Consumer price inflation dipped to an annual rate of 4.9 per cent, its lowest level since April 2021. Lower airline fares helped bring down the total, though inflation remained strong in some areas such as used car prices and still has some way to go to meet the central bank’s 2 per cent target. In particular core inflation, which strips out more volatile food and energy costs, has remained stubbornly high for the last few months. Jobs figures released last Friday showed the labour market – a key driver of inflation – remained hotter than expected, while an alternative measure of core inflation also came in stronger than forecasts late last month. Meanwhile, investors and policymakers will also be paying attention to updated figures on producer price inflation to be published on Thursday, and consumer inflation expectations on Friday.

Source: The Irish Times May 10, 2023 17:55 UTC