Annual inflation slows to just 0.2% - flash data

The annual rate of inflation rose by just 0.2% year-on-year this month compared with 1.1% in August, a flash estimate from the Central Statistices Office showed today.

This was the lowest rate since inflation took hold in March 2021 the latest estimate of the Harmonised Index of Consumer Prices (HICP) showed today - and far below last month's euro zone average of 2.2%.

The CSO said that energy prices are estimated to have decreased by 1.4% in the month and fallen by 14.1% over the 12 months to September.

Food prices are estimated to have remained unchanged in the last month and risen by 1.5% in the last 12 months, while transport costs decreased by 5.4% in the month and fell by 0.4% on an annual basis, it added.

Ireland had the joint third lowest rate of inflation in the euro zone last month after inflation reached almost 10% two years ago.

The drop to almost zero inflation comes a day before the Government is set to introduce another big package of cost of living financial supports on top of planned permanent spending increases of 6.9% and tax cuts in its budget for 2025.

Eurostat will publish flash estimates of inflation from the euro zone for September tomorrow.