Consumer Price Index July 2023

Soundbyte

This is an audio file with a 22-second quote from CSO statistician with the Prices Division, Anthony Dawson, about the July 2023 Consumer Price Index release.
Media outlets have permission to use the clip as long as they credit the CSO.

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.

Annual and Monthly Price Changes

Prices on average, as measured by the CPI, were 5.8% higher in July 2023 compared with July 2022.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+16.5%), Recreation & Culture (+13.9%), Food & Non-Alcoholic Beverages (+8.8%) and Restaurants & Hotels (+7.3%). There were decreases in Education (-6.3%) and Transport (-4.5%).

Consumer Prices in July, as measured by the CPI, increased by 0.2% in the month. During July of last year, prices rose by 0.4% in the month. The most significant monthly price changes were increases in Recreation & Culture (+3.4%) and Transport (+1.4%). There were decreases in Clothing & Footwear (-7.8%) and Furnishings, Household Equipment & Routine Household Maintenance (-0.3%).

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 Housing, Water, Electricity, Gas & Other Fuels (+2.86 pp), Restaurants & Hotels (+1.17 pp), Recreation & Culture (+0.97 pp) and Food & Non-Alcoholic Beverages (+0.96 pp).

The divisions which caused downward percentage point contributions to the CPI in the year were Transport (-0.65 pp) and Education (-0.10 pp).

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

• Housing, Water, Electricity, Gas & Other Fuels rose mainly due to an increase in the cost of mortgage interest repayments, rents, electricity, gas and solid fuels. This increase was partially offset by a reduction in prices for liquid fuels (home heating oil).
• Restaurants & Hotels increased primarily 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.
• Recreation & Culture increased mainly due to higher prices for package holidays, participation in recreational & sporting services and products for pets.
• Food & Non-Alcoholic Beverages rose due to higher prices across a range of products such as meat, vegetables, bread & cereals and milk, cheese & eggs.
• Transport fell primarily due to lower prices for diesel, petrol, services in respect of personal transport equipment and passenger transport by bus & coach. This decrease was partially offset by higher prices for airfares and motor cars.
• Education decreased mainly due to a reduction in costs associated with participating in third level education.

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 (+0.25 pp) and Transport (+0.18 pp). The divisions which caused the largest downward percentage point contributions to the CPI in the month were Clothing & Footwear (-0.39 pp) and Miscellaneous Goods & Services (-0.02 pp).

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

• Recreation & Culture increased mainly due to higher prices for package holidays.
• Transport rose primarily due to an increase in prices for airfares, diesel and petrol.
• Clothing & Footwear decreased due to sales.
• Miscellaneous Goods & Services decreased primarily due to a reduction in prices for jewellery.

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 10.0% in the year to July, while Goods increased by 0.6%. Services, excluding mortgage interest repayments, increased by 8.1% in the year since July 2022.

The CPI excluding tobacco increased by 0.3% in the month of July and rose by 5.9% in the year. The CPI excluding mortgage interest rose by 0.1% in the month and increased by 4.7% 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 4.6% compared with July 2022.

Table 19 details the COICOP sub-indices for the HICP. The most notable changes in the year were increases in Recreation & Culture (+14.1%), Housing, Water, Electricity, Gas & Other Fuels (+10.3%), Food & Non-Alcoholic Beverages (+8.8%) and Restaurants & Hotels (+7.3%). There were decreases in Education (-6.3%), Transport (-4.1%), Miscellaneous Goods & Services (-0.6%) and Health (-0.6%).

The HICP increased by 0.2% in the month. This compares to an increase of 0.4% recorded in July of last year.

The most significant monthly price changes were increases in Recreation & Culture (+3.4%) and Transport (+1.3%). There were decreases in Clothing & Footwear (-7.9%) and Furnishings, Household Equipment and Routine Household Maintenance (-0.5%).

National Average Price

National Average Prices for selected goods and services for July 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 up 5 cents in the year to July 2023, while the same size brown sliced pan was up 6 cents in the year.
• Spaghetti per 500g increased by 18 cents in the year while the average price for 2.5kg of potatoes was up 5 cents.
• Full fat milk per 2 litres increased by 15 cents in the year while the average price of Irish cheddar per kg rose by 41 cents and butter per lb rose by 24 cents.
• The national average price of a take-home 50cl can of lager at €2.32 was up 17 cents on average from July 2022 while a take-home 50cl can of cider at €2.58 was up 13 cents.
• In July 2023, the national average price of a pint of stout in licensed premises was €5.52, up 38 cents in the year, while a pint of lager was €5.98, up 42 cents compared with July 2022.