Thursday, February 10, 2011

Core Deflation Eases

This morning the CSO have released the January Consumer Price Index.  The overall rate shows annual inflation running at +1.7%.  We have been tracking a core measure of inflation that excludes the effect of energy and mortgage interest prices.  Although, core inflation remains negative, it did ease significantly in January.

Core Inflation January

The rate of core inflation increased from –1.1% in December to –0.5% in January.

The CSO provide prices indices for 13 commodity groups.  Here are the indices that are shown lower prices when compared to three years ago.

Lower Indices

The price changes since January 2008 are:

  • Food and Non-Alcoholic Beverages (-5.15%)
  • Clothing and Footwear (-20.44%)
  • Housing, Water, Electricity, Gas and Other Fuels (-14.36%)
  • Furnishings, Household Equipment and Routine Maintenance (-8.43%)

Two other categories have shown small price drops but are not shown on the graph. These are Recreation and Culture (-1.97%) and Restaurants and Hotels (-0.77%).  Here the commodity groups that show rising prices since January 2008.

Higher Indices

The price changes are:

  • Alcoholic Beverages and Tobacco (+5.47%)
  • Health (+10.47%)
  • Transport (+2.39%)
  • Communications  (+3.66%)
  • Education (+14.04%)

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