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Press Statement

Preasráiteas

09 September 2021

Press Statement Consumer Price Index August 2021

Prices on average, as measured by the CPI, were 2.8% higher in August 2021 compared with August 2020
  • This is the largest annual change in prices in almost 10 years, following November 2011 (+2.9%)
  • The divisions with the largest increases in the year were Transport (+10.2%), Housing, Water, Electricity, Gas & Other Fuels (+7.3%), Restaurants & Hotels (+3.4%) and Alcoholic Beverages & Tobacco (+2.4%)
  • There were decreases in Clothing & Footwear (-5.6%) and Furnishings, Household Equipment & Routine Household Maintenance (-0.5%) when compared to August 2020
  • Prices have increased 0.6% in the month which is the tenth month in a row that has shown monthly inflation, the longest sequence of monthly inflation since 2007
  • The most significant monthly price changes were increases to Clothing & Footwear (+2.2%) and Housing, Water, Electricity, Gas & Other Fuels (+2.1%)
  • Annual change in the Harmonised Index of Consumer Prices (HICP) for Ireland in August of +3.0% is in line with the flash estimate for the Euro area of +3.0%

Go to release: Consumer Price Index August 2021

The Central Statistics Office (CSO) has today (09 September 2021) released Consumer Price Index (CPI) August 2021.

Commenting on the release, Colin Cotter, Statistician, said: “The Consumer Price Index (CPI) for August 2021 shows a rise in prices of 2.8% on average compared to August 2020. In August 2021, the largest increase in the year could be seen in Transport (+10.2%). This increase was mainly caused by higher prices for petrol, diesel and motor cars, an increase in airfares and a rise in the cost of services in respect of personal transport equipment.

Other divisions which caused the largest upward contribution to the CPI in the year were Housing, Water, Electricity, Gas & Other Fuels which rose 7.3% and Restaurant & Hotels which rose 3.4%. Housing, Water, Electricity, Gas & Other Fuels increased primarily due to a rise in the cost of electricity, gas, home heating oil and rents in addition to higher mortgage interest repayments. Restaurants & Hotels rose mainly due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. and an increase in the cost of hotel accommodation.

Consumer prices in August increased by 0.6% in the month. This is the tenth month in succession that prices have increased when compared to the previous month. This is the longest consecutive sequence of monthly inflation since 2007. During August of last year, prices fell by 0.1% in the month. 

The most significant monthly price change was in Clothing & Footwear (+2.2%) which was primarily due to recovery from sales from the previous month.”

The Harmonised Index of Consumer Prices (HICP) is used to compare inflation rates across European countries. The annual growth in the HICP in Ireland was +3.0% in August 2021. This compares with a flash estimate of +2.4% in France, +3.3% in Spain and +3.4% in Germany. The Euro area flash estimate for August 2021 was +3.0%, when compared to August last year.

Go to Eurostat Flash Estimate August 2021 for further information.

Colin Cotter further commented:

“When comparing inflation rates across other Euro area countries, the Harmonised Index of Consumer Prices (HICP) should be used. The annual change for the Irish HICP was +3.0% for August, which is directly in line with the overall Euro area flash estimate for August which was also +3.0%.”

For further information contact:

Colin Cotter (+353) 21 453 5770

or email cpi@cso.ie

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