New figures from the Central Statistics Office show that annual consumer price inflation rose by 3.4% between July 2025 and July 2026.
This 3.4% increase was the same level of year-on-year inflation that was recorded the previous month in June.
Consumer prices were 0.1% higher on a monthly basis, according to the CSO data.
July recorded the highest monthly rises in recreation, sport and culture which rose by 2.7% , and housing, water, electricity, gas and other fuels which went up by 0.8%.
The largest decreases in the month were clothing and footwear which went down by 5.1% and transport which dropped by 0.9%.
Commenting on the monthly changes in today’s figures, Edel Flannery, Senior Statistician in the Prices Division said: “Housing, water, electricity, gas and other fuels rose mainly due to higher costs for electricity and mortgage interest.
“This was partially offset by a decrease in the cost of home heating oil,” she added.
According to today’s figures, prices excluding energy and unprocessed foods grew by 3.2% in the 12 months to July, .
The biggest increases were in the year were in education services which rose by 8.9%, clothing and footwear was up 8.5%, housing, water, electricity, gas and other fuels all increased by 7.7% and insurance and financial services went up 5.5%.
“The rise in clothing and footwear was due to higher costs for garments, shoes and other footwear. No division recorded an overall decline in prices when compared with July 2025, the first time this has occurred since December 2021,” explained Ms Flannery.
Despite a stabilisation in inflation this month, with the rate holding at 3.4%, Deloitte’s Chief Economist Kate English said inflation will remain a key concern for consumers as heading into the autumn and winter months.
She said electricity prices increased 3.7% in the month, bringing the annual rate of inflation (8.1%) to its highest rate since late 2023.
“While energy prices remain elevated, they continue to be significantly lower than 2022 and 2023 levels.
“That said, as developments continue in the Gulf region and heat waves persist in Europe, energy price uncertainty will be a key feature for Ireland and Europe this winter.
“Gas reserves are also still lower than their average rate for this time of year,” said Ms English.
She also noted that outside of energy, food prices are key to watch over the coming months, adding that higher fertiliser costs, alongside the impact of the heatwave on input costs as well as crop yields in Ireland and key trading partners is yet to be fully realised within the market.
The CSO also published the National Average Prices of some staple items today.
These show that the national average price for a pound of butter went down by 55c in the 12 months to July 2026.
Other staples that are went down in price during the same period include a 2.5kg bag of potatoes, 2 litres of full fat milk, Irish cheddar per kg all of which fell by 9c, sirloin steak per kilogram is 5c cheaper and an 800g loaf of brown sliced pan dropped by 2c.
While the price of an 800g loaf of white sliced pan was unchanged when compared with the same month last year.
“The national average price for a litre of diesel in July 2026 was €1.76, an increase of 6c on the same time last year. Petrol prices increased by 5c to €1.77 a litre,” said Ms Flannery.
“It should be noted that July prices were collected in mid-July and may not reflect more recent increases in the cost of diesel, petrol and home heating oil resulting from the ongoing situation in the Middle East,” she added.
