Deflation Easing: CSO

Falling consumer prices - down 3.2% in the year to February - means the rate of deflation continued to ease across the State.

New data from the Central Statistics Office showed today that the annual rate of deflation peaked in October at 6.6% before falling back to 5.7% in November and 5% in December.

The most significant decreases were seen in prices for clothing and footwear, housing, water, electricity, gas and other fuels. The cost of food and non-alcoholic beverages were also down, falling 8%.

"Prices have fallen in most areas of the economy over the last year," said National Irish Bank's chief economist Dr Ronnie O'Toole.

"The main exceptions have been in the cost of transport because of the rise in oil prices and the impact of the carbon tax, the cost of education due to the increase in the third-level registration fee from €900 to €1,500 at the start of the current academic year, and the 'miscellaneous goods' category because of higher insurance costs."

Fine Gael Finance Spokesman Richard Bruton called for an end to what he described as the "great Government rip-off".

"Households which are struggling to make ends meet are being ripped off by the very Government which is supposed to be helping them. Not only are businesses being starved of credit, they are also being fleeced by the State.

"Even the Government's key advisers recognise that the Irish State is too expensive for businesses, as well as homeowners."

The party called for action on public sector costs, tackle red-tape for businesses and have an overhaul of the energy generation in Ireland with greater competition."

(BMcC)