The harmonized rate of inflation rose to 9.4% in October from 8.6% in September. The reading was largely due to accelerating price pressures for housing and utilities. In addition, food and non-alcoholic beverage prices rose at a faster rate.
The trend has pointed upward, with the harmonized average annual inflation coming in at 7.6% in October (September: 7.2%). Meanwhile, consumer price inflation rose to 9.2% in October from 8.2% in September.
Finally, harmonized consumer prices rose 1.50% in October from the previous month, following the flat result for September. The October result marked the highest reading since March.
The acceleration in October reflected the utility companies’ decision to raise electricity and gas prices in the face of higher wholesale prices. Electric Ireland, the country’s largest utility company, announced in early September that it would raise rates in October, and other utility companies are soon following suit. The last time the company raised prices was in August.
FocusEconomics analysts expect the harmonized rate of inflation to be 5.1% in 2023, up 0.9 percentage points from last month’s forecast, and 2.3% in 2024.