Irish inflation falls to 1.3 per cent

The rate of Irish  inflation fell in March for the seventh straight month to 1.3 per cent, according to figures released this morning by the Central Statistics Office (CSO).

The Consumer Price Index (CPI) figures showed that prices in March increased by 0.4 per cent compared with an increase of 0.8 per cent in March of 2003.

This compares to an increase of 0.8 per cent in March of last year. As a result, the annual rate of inflation fell to 1.3 per cent, down from 1.7 per cent  in February.

The Taoiseach, Mr Ahern, said the fall was "especially encouraging, particularly since it continues a sustained downward trend evident over previous months".

"Today's figure, is the lowest since July 1999 and it confirms the success of the Government's overall counter-inflationary policies," he added.

The EU Harmonised Index of Consumer Prices (HICP) increased by 0.4 per cent in the month compared with an increase of 0.7 per cent in March of last year, and the annual rate of inflation as measured by the HICP fell to 1.8 per cent, down from 2.2 cent last month.

The cost of clothing and footwear rose last month due to a rise in prices after the end of winter sales although, year-on-year, the sector saw a decrease of 4 per cent.

Housing, water, electricity and gas also saw price increases as did mortgage interest repayments and local authority rents.