Consumer Price Index February 2023

Soundbyte

This is an audio file with a 36-second quote from CSO statistician with the Prices Division, Anthony Dawson, about the February 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 due to some items having different weights in the respective indices.

Annual and Monthly Price Changes

Prices on average, as measured by the CPI, were 8.5% higher in February 2023 compared with February 2022.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+26.0%), Food & Non-Alcoholic Beverages (+13.1%), Restaurants & Hotels (+8.9%) and Alcoholic Beverages & Tobacco (+5.0%). There were decreases in Education (-6.3%) and Miscellaneous Goods & Services (-0.1%).

Consumer Prices in February, as measured by the CPI, increased by 1.6% in the month. During February of last year, prices rose by 0.9% in the month. The most significant monthly price changes were increases in Clothing & Footwear (+5.8%) and Recreation & Culture (+3.5%). There was a decrease in 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 contribution to the CPI in the year were Housing, Water, Electricity, Gas & Other Fuels (+4.31%), Food & Non-Alcoholic Beverages (+1.47%), Restaurants & Hotels (+1.36%) and Transport (+0.44%).

The divisions which caused the largest downward contribution to the CPI in the year were Education (-0.11%) and Miscellaneous Goods & Services (-0.02%).

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

• Housing, Water, Electricity, Gas & Other Fuels rose mainly due to an increase in the cost of electricity, gas, liquid fuels (home heating oil), solid fuels, mortgage interest repayments and higher rents.
• Food & Non-Alcoholic Beverages increased due to higher prices across a range of products such as meat, bread & cereals, milk, cheese & eggs, vegetables and mineral waters, soft drinks, fruit & vegetable juices.
• 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.
• Transport increased primarily due to a rise in prices for motor cars, airfares, maintenance & repair of personal transport equipment and diesel. This increase was partially offset by lower prices for passenger transport by bus & coach and petrol.
• Education fell mainly due to a reduction in costs associated with participating in third level education.
• Miscellaneous Goods & Services decreased primarily due to a reduction in prices for childcare services, motor insurance premiums, health insurance premiums and jewellery, clocks & watches. This decrease was partially offset by an increase in prices for articles & products for personal care, hairdressing salons and house insurance premiums.

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 contribution to the CPI in the month were Restaurants & Hotels (+0.32%), Transport (+0.30%), Clothing & Footwear (+0.28%) and Recreation & Culture (+0.24%).

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

• Restaurants & Hotels rose 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.
• Transport increased primarily due to higher prices for airfares, petrol and motor cars. This increase was partially offset by lower prices for diesel.
• Clothing & Footwear rose due to a recovery from sales.
• Recreation & Culture increased primarily due to higher prices for participation in recreational & sporting services and an increase in the cost of 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 9.7% in the year to February, while Goods increased by 7.1%. Services, excluding mortgage interest repayments, increased by 8.5% in the year since February 2022.

The CPI excluding tobacco increased by 1.6% in the month of February and rose by 8.6% in the year. The CPI excluding mortgage interest rose by 1.5% in the month and increased by 7.8% 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 8.1% compared with February 2022.

Table 19 details the COICOP sub-indices for the HICP. The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+25.7%), Food & Non-Alcoholic Beverages (+13.0%), Restaurants & Hotels (+8.9%) and Alcoholic Beverages & Tobacco (+5.0%). There was a decrease in Education (-6.2%).

The HICP increased by 1.5% in the month. This compares to an increase of 0.9% recorded in February of last year.

The most significant monthly price changes were increases in Clothing & Footwear (+5.8%) and Recreation & Culture (+3.5%). There was a decrease in Communications (-0.1%).

National Average Price

National Average Prices for selected goods and services for February 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 24 cents in the year to February 2023, while the same size brown sliced pan was up 23 cents in the year.
• Spaghetti per 500g increased by 21 cents in the year while the average price for 2.5kg of potatoes was up 7 cents.
• Full fat milk per 2 litres increased by 48 cents in the year while the average price of Irish cheddar per kg rose by €1.31 and butter per lb rose by 69 cents.
• The national average price of a take-home 50cl can of lager at €2.25 was up 7 cents on average from February 2022 while a take-home 50cl can of cider at €2.54 was up 18 cents.
• In February 2023, the national average price of a pint of stout in licensed premises was €5.43, up 48 cents a pint in the year, while a pint of lager was €5.88, up 55 cents compared with February 2022.