The annual average rate of inflation last year was 2.2 per cent, up slightly on 2.1 per cent the year before, but down considerably on 6.3 per cent in 2023, new data from the Central Statistics Office (CSO) shows.

The largest year-on-year increase last year was recorded in November when prices rose by 3.2 per cent compared with a year earlier.

The biggest hikes were recorded for food and non-alcoholic beverages, which increased 4 per cent.

Prices in the education category increased 3.9 per cent, while restaurants and hotels, as well as alcoholic beverages and tobacco, went up 3.1 per cent.

The only decreases were recorded for furnishings, household equipment and routine household maintenance, where prices came down 0.6 per cent, as well as clothing and footwear, where they fell 0.1 per cent.

Prices for energy products fell by 0.2 per cent on average in the year compared to a decline of 7.7 per cent in 2024.

The price of goods grew on average by 1.1 per cent compared to a rise of 0.2 per cent in 2024. The price of services, which includes mortgage interest, climbed by 2.9 per cent, down from a rise of 3.4 per cent the previous year.

The data is contained within the CSO’s latest Consumer Price Index bulletin, which covers the month of December. It shows consumer prices rose by 0.5 per cent in the month between November and December.

Prices for consumer goods and services in December rose by 2.8 per cent on average when compared with December 2024. The rate of inflation was down from an annual increase of 3.2 per cent in the 12 months to November.

The most significant increases in the 12 months to December were seen in education, which increased 8.9 per cent, and in clothing and footwear, where prices rose 5.7 per cent.

The CSO said the annual change in education reflects a rise in costs associated with third-level education which came into effect from October.

Furnishings, household equipment and routine household maintenance was the only division to show a decline as prices fell 0.4 per cent.

There were price increases in the 12 months to December for Irish cheddar per kg (68c); a pound of butter (54c); two litres of full fat milk (6c); and an 800g loaf of white sliced pan (5c).

There were decreases in the price of a 2.5kg bag of potatoes (24c); spaghetti per 500g (2c); and an 800g loaf of brown sliced pan (1c) when compared with December 2024.

Looking at the biggest annual price increases, the CSO said restaurants and hotels increased prices for alcoholic drinks and food consumed in licensed premises, restaurants, and cafes, while there was also an increase in the cost of hotel accommodation.

Housing, water, electricity, gas and other fuels increased primarily due to a rise in the cost of rents, mortgage interest repayments and electricity.

The food and non-alcoholic beverages category rose due to higher prices across a range of products such as meat, chocolate and confectionery, milk, cheese and eggs, and bread and cereals.

Miscellaneous goods and services increased mainly due to higher health insurance premiums, an increase in prices in hairdressing salons and personal grooming establishments, and higher prices for childcare services.

This increase was partially offset by lower prices for jewellery, clocks and watches, the CSO added.

In terms of the monthly changes, transport rose mainly due to an increase in airfares. This increase was partially offset by a decrease in the cost of cars.

Prices in the recreation and culture category increased primarily due to higher prices for package holidays, although this increase was partially offset by a reduction in the cost of recording media.