Consumer Price Index August 2023

Soundbyte

This is an audio file with a 22-second quote from CSO statistician with the Prices Division, Anthony Dawson, about the August 2023 Consumer Price Index release.
Media outlets have permission to use the clip as long as they credit the CSO.

Headline Table and Graph

Figure 1 shows the development of the CPI and HICP over recent months. It also shows the recent divergence of the CPI and HICP. This divergence is primarily due to the fact that the CPI includes mortgage interest whereas the HICP does not include mortgage interest.

Annual and Monthly Price Changes

Prices on average, as measured by the CPI, were 6.3% higher in August 2023 compared with August 2022.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+17.3%), Recreation & Culture (+12.9%), Food & Non-Alcoholic Beverages (+8.2%) and Restaurants & Hotels (+7.3%). There were decreases in Education (-6.3%) and Transport (-2.0%).

Consumer Prices in August, as measured by the CPI, increased by 0.7% in the month. During August of last year, prices rose by 0.2% in the month. The most significant monthly price changes were increases in Clothing & Footwear (+4.2%) and Housing, Water, Electricity, Gas & Other Fuels (+1.7%). There were decreases in Recreation & Culture (-0.8%) and Communications (-0.1%).

Contributions to the Overall CPI

Annual Change

Table 3 shows the contribution of each 2-digit COICOP¹ division to the overall change in the CPI. A detailed breakdown of the individual components of each of the 12 COICOP divisions is presented in Tables 4 to 15.

The divisions which caused the largest upward percentage point (pp) contributions to the CPI in the year were Housing, Water, Electricity, Gas & Other Fuels (+3.02 pp), Restaurants & Hotels (+1.18 pp), Recreation & Culture (+0.90 pp) and Food & Non-Alcoholic Beverages (+0.89 pp).

The only divisions to cause downward percentage point contributions to the CPI in the year were Transport (-0.27 pp) and Education (-0.10 pp).

The main factors contributing to the annual change were as follows:

• Housing, Water, Electricity, Gas & Other Fuels increased primarily due to a rise in the cost of mortgage interest repayments, rents, electricity, gas and solid fuels. This increase was partially offset by a reduction in prices for liquid fuels (home heating oil).
• 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.
• Recreation & Culture increased primarily due to higher prices for package holidays, participation in recreational & sporting services and products for pets.
• Food & Non-Alcoholic Beverages rose due to higher prices across a range of products such as meat, vegetables, bread & cereals, mineral waters, soft drinks, fruit & vegetable juices and sugar, jam, honey, chocolate & confectionery.
• Transport fell primarily due to lower prices for diesel, petrol, services in respect of personal transport equipment and passenger transport by bus & coach. This decrease was partially offset by higher prices for motor cars and airfares.
• Education decreased mainly due to a reduction in costs associated with participating in third level education.

¹_{Classification of Individual Consumption by Purpose Adapted to the Needs of Harmonised Indices of Consumer Prices (2000).}

 

Monthly Change

The divisions which caused the largest upward percentage point contributions to the CPI in the month were Housing, Water, Electricity, Gas & Other Fuels (+0.32 pp) and Clothing & Footwear (+0.19 pp). The only division to cause a downward percentage point contribution to the CPI in the month was Recreation & Culture (-0.06 pp).

The main factors contributing to the monthly change were as follows:

• Housing, Water, Electricity, Gas & Other Fuels rose primarily due to an increase in the cost of liquid fuels (home heating oil), mortgage interest repayments and rents.
• Clothing & Footwear increased due to a recovery from sales.
• Recreation & Culture decreased primarily due to lower prices for package holidays.

CPI sub-indices

Tables 4 to 15 detail all COICOP¹ sub-indices of the CPI.

Table 2 and table 17 detail selected consumer price index sub-indices. The sub index for Services rose by 9.5% in the year to August, while Goods increased by 2.5%. Services, excluding mortgage interest repayments, increased by 7.3% in the year since August 2022.

The CPI excluding tobacco increased by 0.7% in the month of August and rose by 6.4% in the year. The CPI excluding mortgage interest rose by +0.6% in the month and increased by 5.1% in the year.

¹_{Classification of Individual Consumption by Purpose Adapted to the Needs of Harmonised Indices of Consumer Prices (2000).}

Harmonised Index of Consumer Prices

Prices on average, as measured by the EU Harmonised Index of Consumer Prices (HICP), increased by 4.9% compared with August 2022.

Table 19 details the COICOP sub-indices for the HICP. The most notable changes in the year were increases in Recreation & Culture (+12.9%), Housing, Water, Electricity, Gas & Other Fuels (+11.0%), Food & Non-Alcoholic Beverages (+8.2%) and Restaurants & Hotels (+7.3%). There were decreases in Education (-6.3%), Transport (-1.5%), Miscellaneous Goods & Services (-0.7%) and Health (-0.7%).

The HICP increased by 0.5% in the month. This compares to an increase of 0.2% recorded in August of last year.

The most significant monthly price changes were increases in Clothing & Footwear (+4.2%) and Housing, Water, Electricity, Gas & Other Fuels (+1.6%). There were decreases in Recreation & Culture (-0.9%) and Miscellaneous Goods & Services (-0.2%).

National Average Price

National Average Prices for selected goods and services for August 2023 are detailed in Table 20.

Looking at the National Average Prices of some staple items:

• The national average price for bread (large (800g) white sliced pan) was up 4 cents in the year to August 2023, while the same size brown sliced pan was also up 4 cents in the year.
• Spaghetti per 500g increased by 16 cents in the year while the average price for 2.5kg of potatoes was up 11 cents.
• Full fat milk per 2 litres increased by 11 cents in the year while the average price of Irish cheddar per kg rose by 63 cents and butter per lb rose by 19 cents.
• The national average price of a take-home 50cl can of lager at €2.34 was up 19 cents on average from August 2022 while a take-home 50cl can of cider at €2.58 was up 13 cents.
• In August 2023, the national average price of a pint of stout in licensed premises was €5.54, up 40 cents in the year, while a pint of lager was €5.99, up 44 cents compared with August 2022.