Annual inflation slows slightly to 3.4% in June – CSO

New figures from the Central Statistics Office show that annual consumer price inflation eased slightly to a four-month low of 3.4% in June from 3.6% the previous month.

The CSO said the figure was in line with a flash estimate earlier.

Prices were 0.3% higher on a monthly basis, the CSO added.

June saw higher prices for third level education costs as well as more expensive rents, mortgage interest repayments and home heating oil.

The CSO said the sectors seeing the biggest annual increases in June were Education Services, which rose by 8.9%, while Housing, Water, Electricity, Gas & Other Fuels were up 7.3%.

Clothing & Footwear prices increased by 7% while Insurance & Financial Services climbed 5.7% higher.

Meanwhile on a monthly basis, the sectors that recorded the largest rises in the month were Recreation, Sport & Culture, with prices up 4.3% and while the cost of Housing, Water, Electricity, Gas & Other Fuels rose by 0.6%.

The sectors with the biggest decreases in the month were Clothing & Footwear and Transport which fell by 0.9% and 0.8% respectively.

Commenting on today’s figures Kate English, chief economist at Deloitte Ireland, said that while the inflation outlook has improved in recent weeks, it remains elevated compared to the start of the year.

The economist noted that food inflation continues to decline and is at its lowest level since September 2021. However, with the rising cost of fertiliser, it is uncertain if this will hold.

“Lower fuel prices reversed the sharp upward trend seen in the Consumer Price Index in March, yet European gas prices continue to be a concern,” Kate English said.

“These have moved upwards over the past week as a heatwave in Europe increases the demand for air conditioning. Gas reserves remain lower than their average over the past five years, and this will be a pressure point as we move into colder months,” she said.

She also said that a change in the inflation outlook has already forced central banks to react.

“Last month, the European Central Bank increased interest rates for the first time since September 2023. With the ECB due to meet again in two weeks’ time, all eyes will be on euro zone inflation data next week. At this point in time, it is not expected we will see another rate increase announced,” she added.

The CSO also today published the National Average Prices of some staple items.

These show that the national average price for a large (800g) white sliced pan was unchanged in the year to June, while the same size brown sliced pan decreased by four cent in the year.

The national average price of 1kg of sirloin steak fell by 35 cents in the year, while the average price for 2.5kg of potatoes was down by 21 cents.

The national average price of full fat milk per 2 litres was down nine cents in the year, while butter per lb fell by 54 cents and the average price of Irish cheddar per kg decreased by 30 cents.

Meanwhile, the national average price of a take-home 50cl can of lager at €2.41 remained unchanged compared to the same time last year5, while a take-home 50cl can of cider at €2.72 was up a cent.

In June, the national average price of a pint of stout in licensed premises was €6.33, up 26 cents in the year, while a pint of lager was €6.75, also up 26 cents compared with June of 2025.

And the national average price for a litre of diesel in June 2026 was €1.88, an increase of 23 cents on the same time last year. Petrol prices increased by 16 cents to €1.85 a litre.