Inflation hits 13 year high in September - CSO

Consumer prices rose by 3.7% in September, according to the latest release from the Central Statistics Office.

The Harmonised Index of Consumer Prices (HICP) which compares prices across Europe rose by 3.8%.

This is the biggest annual increase in inflation since October 2008 and the longest series of monthly increases since 2007.

The main contributor to inflation was energy costs. Electricity was up 20.5% in the year while gas prices were up 14.2%. Home heating oil was up 46%.

Rents were up 5.6%.

Petrol prices were up 14.5% while diesel was up 15.5%. Air fares over the year were up 36.5%.

Prices in hotels and restaurants were up 2.3%.

The one bright spot for consumers was motor insurance which fell by 8.4% in the year. Food prices were also up only marginally by 0.3%.

The Department of Finance has forecast that inflation will peak at 4.5% in the final quarter before falling back below 2% next year.

However, it said the average rate could be closer to 3.5% in 2022 if there are higher energy prices, prolonged global supply chain disruptions and greater short-term economic demand.

Reporting: RTE News