Inflation - What Inflation <G> Irish May CPI Higher Than Forecast; +4.7% On Year
By Quentin Fottrell
Of DOW JONES NEWSWIRES
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Irish CPI ! !
May Apr !Consensus 0.7% On Mo !
On Mo 0.8% 0.1% ! 4.5% On Yr !
On Yr 4.7% 4.3% !Actual 0.8% On Mo !
! 4.7% On Yr !
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DUBLIN (Dow Jones)--Irish inflationary pressures remained high in May as both the annual and monthly rate exceeded most economists' expectations, data from Ireland's Central Statistics Office showed Thursday.
Higher fuel and food prices caused the rate of consumer price inflation to remain relatively high. The annual rate was 4.7% in May, compared with 4.3% in April.
On the month, consumer prices rose 0.8% in May, compared with a 0.1% rise a month earlier.
Economists expected a reading of about 4.5% on the year and 0.7% on the month in May.
Bloxham Stockbrokers chief economist Alan McQuaid forecasts CPI averaging 4.0% to 4.5% in 2008, kept buoyant by persistently high fuel costs.
Like many other European countries, Ireland's economy is currently going through a period of slowing growth and elevated inflationary pressures.
Ireland's annual inflation rate hasn't been below 4.3% since October 2006. The country's inflation rate averaged 4.9% in 2007, up from 4.0% in 2006.
The largest upward pressures came from housing, water, electricity, and fuels, which rose 10.6% on the year. Home heating oil in particular was up 47%, the statistics office said. Food and drink prices rose 7.8% on the year, while health prices rose 6.1% and education prices rose 6.1%.
On the month, mortgage interest rates were up 2.0% on the month; housing, water, electricity, and fuels rose 1.6% on the month.
HICP inflation, calculated on a European Union-harmonized basis, was 3.7% on the year in May, well above the European Central Bank's 2.0% target ceiling. On the month, HICP rose 0.6% in May, the CSO said.
-By Quentin Fottrell, Dow Jones Newswires; 44-20-7842-9307; quentin.fottrell@dowjones.com
(END) Dow Jones Newswir |
