The headline measure of price changes in Ireland from the latest CPI release may be heading towards inflation once again – the June annual CPI inflation figure of –0.9% is slightly up on the May figure of –1.1% – but the measure of core inflation we have been tracking is still very much negative.
Deflation remains, though the figure did rise slightly in June. We have previously looked at this figure using the March, April and May CPI releases from the CSO. Here is the June update.
The measure of core inflation excludes the impact of mortgage interest and energy products, which between them make up about 15% of the index. The June figures suggest that core deflation in Ireland is running at -2.5%, up from -2.7% in May.
The measure is showing strong persistence and has been between the range of –2.5% to –2.8% for the past six months, even as the overall inflation rate has continued to move towards positive territory.