Consumer Price Index December 2023

Headline Table and Graph

Figure 1 shows the development of the CPI and HICP over recent months. It also shows the recent divergence of the CPI and HICP. This divergence is primarily due to the fact that the CPI includes mortgage interest whereas the HICP does not include mortgage interest.

Consumer Price Index Annual Review - 2023

The annual average rate of inflation in 2023 was +6.3%. This compares to an increase of 7.8% for 2022 and an increase of 2.4% for 2021.

The largest year-on-year price increase was recorded in February 2023 when prices rose by 8.5% compared with the previous February. 

The largest price increases were recorded for Housing, Water, Electricity, Gas & Other Fuels (+15.6%), Food & Non-Alcoholic Beverages (+9.8%), Restaurants & Hotels (+7.8%) and Recreation & Culture (+7.8%). The only decreases were recorded for Education (-4.4%) and Transport (-0.3%).

During 2023, prices for energy products rose on average by 5.1% compared to an increase of 41.2% in 2022. The price of Goods increased on average by 3.2% compared to a rise of 9.0% in 2022. The price of Services (which includes mortgage interest) rose by 8.7% compared to a rise of 6.9% the previous year.

Annual and Monthly Price Changes

Prices on average, as measured by the CPI, were 4.6% higher in December 2023 compared with December 2022.

The most notable changes in the year were increases in Recreation & Culture (+10.3%), Restaurants & Hotels (+6.6%), Food & Non-Alcoholic Beverages (+5.6%) and Housing, Water, Electricity, Gas & Other Fuels (+5.2%). There were no decreases when compared with December 2022.

Consumer Prices in December, as measured by the CPI, increased by 0.5% in the month. During December of last year, prices fell by 0.2% in the month. The most significant monthly price changes were increases in Recreation & Culture (+2.5%) and Furnishings, Household Equipment & Routine Household Maintenance (+1.4%). There were decreases in Alcoholic Beverages & Tobacco (-0.5%) and Communications (-0.1%).

Contributions to the Overall CPI

Annual Change

Table 3 shows the contribution of each 2-digit COICOP¹ division to the overall change in the CPI. A detailed breakdown of the individual components of each of the 12 COICOP divisions is presented in Tables 4 to 15.

The divisions which caused the largest upward percentage point (pp) contributions to the CPI in the year were Restaurants & Hotels (+1.05 pp), Housing, Water, Electricity, Gas & Other Fuels (+0.97 pp), Recreation & Culture (+0.71 pp) and Food & Non-Alcoholic Beverages (+0.59 pp).

The main factors contributing to the annual change were as follows:

• Restaurants & Hotels rose mainly due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. and an increase in the cost of hotel accommodation.
• Housing, Water, Electricity, Gas & Other Fuels increased primarily due to a rise in the cost of mortgage interest repayments, rents and services for the maintenance & repair of the dwelling. This increase was partially offset by a reduction in prices for electricity, gas, liquid fuels (home heating oil) and coal.
• Recreation & Culture rose mainly due to higher prices for package holidays, participation in recreational & sporting services, cultural services and products for pets. This increase was partially offset by a reduction in costs associated with educational textbooks.  
• Food & Non-Alcoholic Beverages increased due to higher prices across a range of products such as vegetables, bread & cereals, meat, mineral waters, soft drinks, fruit & vegetable juices and sugar, chocolate & confectionery.

¹_{Classification of Individual Consumption by Purpose Adapted to the Needs of Harmonised Indices of Consumer Prices (2000).}

Monthly Change

The divisions which caused the largest upward percentage point contributions to the CPI in the month were Recreation & Culture (+0.17 pp) and Transport (+0.10 pp). The only division to cause a downward percentage point contribution to the CPI in the month was Alcoholic Beverages & Tobacco (-0.03 pp).

The main factors contributing to the monthly change were as follows:

• Recreation & Culture increased primarily due to higher prices for package holidays.
• Transport rose mainly due to higher prices for airfares. This increase was partially offset by a reduction in costs for petrol and diesel.
• Alcoholic Beverages & Tobacco fell due to lower prices for alcoholic beverages sold in supermarkets and off licences.

CPI sub-indices

Tables 4 to 15 detail all COICOP¹ sub-indices of the CPI.

Table 2 and table 17 detail selected consumer price index sub-indices. The sub index for Services rose by 6.0% in the year to December, while Goods increased by 2.8%. Services, excluding mortgage interest repayments, increased by 4.1% in the year since December 2022.

The CPI excluding tobacco increased by 0.6% in the month of December and rose by 4.6% in the year. The CPI excluding mortgage interest rose by 0.5% in the month and increased by 3.6% in the year.

¹_{Classification of Individual Consumption by Purpose Adapted to the Needs of Harmonised Indices of Consumer Prices (2000).}

Harmonised Index of Consumer Prices

Prices on average, as measured by the EU Harmonised Index of Consumer Prices (HICP), increased by 3.2% compared with December 2022.

Table 19 details the COICOP sub-indices for the HICP. The most notable changes in the year were increases in Recreation & Culture (+10.3%), Restaurants & Hotels (+6.6%), Food & Non-Alcoholic Beverages (+5.6%) and Alcoholic Beverages & Tobacco (+4.9%). There were decreases in Housing, Water, Electricity, Gas & Other Fuels (-1.6%), Health (-0.6%) and Miscellaneous Goods & Services (-0.2%).

The HICP increased by 0.4% in the month. This compares to a decrease of 0.3% recorded in December of last year.

The most significant monthly price changes were increases in Recreation & Culture (+2.5%) and Furnishings, Household Equipment & Routine Household Maintenance (+1.4%). There were decreases in Alcoholic Beverages & Tobacco (-0.5%) and Communications (-0.1%).

National Average Price

National Average Prices for selected goods and services for December 2023 are detailed in Table 20.

Looking at the National Average Prices of some staple items:

• The national average price for bread (large (800g) white sliced pan) was down 2 cents in the year to December 2023, while the same size brown sliced pan did not change in price in the year. 
• Spaghetti per 500g increased by 13 cents in the year while the average price for 2.5kg of potatoes was up 36 cents.
• Full fat milk per 2 litres decreased by 8 cents in the year while the average price of Irish cheddar per kg rose by 21 cents and butter per lb fell by 9 cents.
• The national average price of a take-home 50cl can of lager at €2.32 was up 16 cents on average from December 2022 while a take-home 50cl can of cider at €2.59 was up 12 cents.
• In December 2023, the national average price of a pint of stout in licensed premises was €5.64, up 44 cents in the year, while a pint of lager was €6.06, up 33 cents compared with December 2022.