Irish inflation October rate hits 4.3%, a three-year high

Cost of living crisis deepens as Irish inflation climbs again

The latest figures from the Central Statistics Office (CSO), published on Wednesday, put inflation at its highest level since December 2023. 

The annual rate had stood at 4.1% in September, while prices increased by a further 0.7% in October alone, The Irish Times reported.

Some of the biggest increases were recorded in household energy and housing expenses. 

Home heating oil cost more than 74% extra compared with October last year, while mortgage interest repayments were up 10.8%.

Across housing, water, electricity, gas and other fuels, prices increased by 10.7% over the twelve-month period. 

This was also the largest contributor to the overall inflation rate, according to the CSO.

December rate hike on the cards as ECB weighs latest figures

The figures were not limited to household bills. Transport costs also increased, largely due to higher prices for petrol, diesel and air travel. 

A litre of diesel cost an average of €2.19 at Irish forecourts in October, 48 cent more than a year earlier. Petrol averaged €2.02 per litre, representing a 28 cent increase.

Education was the only one of the 13 categories tracked by the CSO where prices fell over the year. The other 12 all recorded increases.

When food and energy are removed from the calculation, annual inflation comes to 3.1%. This underlying measure is lower than the headline figure, but remains above the European Central Bank's inflation target.

The latest reading could add to pressure on the ECB as it considers its next interest rate decision. 

Chief economist Philip Lane told Bloomberg Television this week that a rate increase in December would be "prudent" if incoming figures did not change significantly. 

His comments came despite a recent decline in oil prices, which has helped ease some inflationary pressures.