Higher energy prices push inflation to 4.3% in October

Higher energy prices have pushed the rate of inflation to 4.3% for the 12 months to October.

This compares with 4.1% for the year to September, according to the latest Consumer Price Index figures from the Central Statistics Office.

Home heating oil prices were up 74.4% in the year to October.

Diesel prices rose 27.9% and petrol was up 16%.

Electricity prices increased 6.7% and gas rose 6.3%.

Airfares were up 16% while postal and courier services rose 12%.

CSO statistician Anthony Dawson said the rate in October was "the highest rate of inflation since December 2023 when inflation was 4.6%."

In the Budget last month, the Government extended a tax reductions on petrol, diesel and home heating oil.

It also suspended rises to Carbon Tax and provided more social welfare support to help with energy costs.

Food prices have risen by 0.8% over the past year but many economists have warned grocery prices could increase further this year as a result of higher fertiliser costs adding to farming costs.

Today's figures show price rises for sirloin steak per kg (up 15 cent), a 2.5kg bag of potatoes (up 12 cent) and an 800g loaf of white sliced pan (up one cent).

But dairy prices fell with decreases for butter (down 57 cent), Irish cheddar per kg (down 28 cent) and 2 litres of full fat milk (down four cent).

Separate figures from the CSO today show that rent prices have increased by 36% while mortgage interest costs have increased by 98.3% over the last five years.

On an annual basis rents were up by 7% in October compared to the same time last year, while mortgage interest rose by 10.8%.

The CSO said that Local Authority rents have risen by 12.7% since October of last year, while Private Rents have increased by 5.5%.

Today's CSO figures show that mortgage interest costs in October were at their highest level since October 2008 as a result of a number of interest rate rises and the increasing value of houses over this time period.

Rental price levels are at their highest level since the CSO began publishing detailed sub-indices in November 1996 and have increased every month since July 2021, the CSO said.

Meanwhile, household maintenance, which includes materials and services for household repair and maintenance, has also risen, increasing by 2.1% in the 12 months to October and by 19.3% in the last five years.

Fuel price rises 'completely contingent on geopolitical factors' - ESRI

Muireann Lynch, Research Officer with the ESRI, said that the almost 75% increase in the price of home heating oil over the last year was "staggering" and "unprecedented".

Speaking on RTÉ's Drivetime, she said it should be recognised that this increase is in the year to October 2026 and that what has happened this year is the war on Iran.

"I certainly wouldn't anticipate this time next year for us to continue to see that kind of increase - we may have even seen a bit of a decrease, but that is really completely contingent on geopolitical factors that are outside of our control," she said.

"The end of the conflict is a necessary condition in order for that to come back down. It's probably not a sufficient condition because it depends on what happens after the conflict has ended - but the first thing is the [Iran] conflict has to end," Ms Lynch said.

She said that petrol, diesel and [aviation] jet fuel are all "close to oil," so if oil prices go up, air fares increase and so does the cost of fuel at the pumps and this is also borne in today's inflation figures.

Had it not been for cuts in excise duty, carbon taxes, and VAT, fuel prices naturally would be even higher, Ms Lynch said.