Annual inflation at highest level since January 2024

Inflation hit its highest level since January 2024, with consumer prices increasing by 4.1% in the year to September, a new report from the Central Statistics Office reveals. This marks a notable jump from the 3.7% rise observed between August and September of the previous year. Energy costs were the primary driver behind this surge, with the cost of energy products such as electricity, gas, and other fuels leaping by an impressive 15.3% in the year to September.

This significant increase in energy prices is largely attributed to a spike in oil costs, following the ongoing conflict in the Middle East. The economic impact of this energy price hike has been felt heavily by households, as the cost of electricity, gas, and home-heating oil surged notably since March.

Moreover, other factors have contributed to the rise in consumer prices. Over a 10% increase in mortgage interest rates has also played a role in elevating overall costs. Additionally, the costs associated with education and transport have risen by 8.9% and 7.5% respectively, adding further pressure on household budgets. Despite these increases, food prices have remained relatively stable, with a modest rise of only 0.4% over the past year.

However, experts caution that food-price inflation is anticipated to escalate in the coming year, adding another layer of concern to the already rising cost of living.