Prices on average, as measured by the CPI, were 0.8% higher in July compared with July 2017.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+5.4%), Alcoholic Beverages & Tobacco (+2.8%), Transport (+2.2%) and Restaurants & Hotels (+1.8%).  There were decreases in Furnishings, Household Equipment & Routine Household Maintenance (-3.9%), Miscellaneous Goods & Services (-3.2%), Food & Non-Alcoholic Beverages (-2.1%) and Communications (-2.0%).

Consumer Prices in July, as measured by the CPI, increased by 0.4% in the month.  During July of last year, prices were unchanged in the month.  The most significant monthly price changes were increases in Transport (+3.2%) and Restaurants & Hotels (+0.8%).  There were decreases in Clothing & Footwear (-5.6%) and Furnishings, Household Equipment & Routine Household Maintenance (-1.4%).

Contributions to the overall CPI – annual change

Table 17 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 contribution to the CPI in the year were Housing, Water, Electricity, Gas & Other Fuels (+0.76%), Restaurants & Hotels (+0.37%) and Transport (+0.35%).

The divisions which caused the largest downward contribution to the CPI in the year were Miscellaneous Goods & Services (-0.37%), Food & Non-Alcoholic Beverages (-0.22%) and Furnishings, Household Equipment & Routine Household Maintenance (-0.19%).

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

• Housing, Water, Electricity, Gas & Other Fuels rose mainly due to higher rents and an increase in the price of home heating oil, electricity and gas.
• 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.
• Transport rose mainly due to higher prices for diesel and petrol which was partially offset by a decrease in air fares.
• Miscellaneous Goods & Services decreased primarily due to lower health and motor insurance premiums and lower prices for appliances, articles & products for personal care.
• Food & Non-Alcoholic Beverages fell due to lower prices across a range of products such as meat, vegetables, bread & cereals and jam, honey, chocolate & confectionery.
• Furnishings, Household Equipment & Routine Household Maintenance decreased mainly due to the reduced cost of non-durable household goods, furniture & furnishings, household textiles and glassware, tableware & household utensils.

Contributions to the overall CPI – monthly change

The divisions which caused the largest upward contribution to the CPI in the month were Transport (+0.47%) and Restaurants & Hotels (+0.15%).  The divisions which caused the largest downward contribution in the month were Clothing & Footwear (-0.24%) and Furnishings, Household Equipment & Routine Household Maintenance (-0.06%).

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

• Transport increased mainly due to an increase in air fares.
• Restaurants & Hotels rose due to an increase in the cost of hotel accommodation and higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc.
• Clothing & Footwear decreased due to sales.
• Furnishings, Household Equipment & Routine Household Maintenance fell mainly due to the reduced cost of furniture & furnishings, non-durable household goods and household textiles.

CPI sub-indices

The sub index for Services rose by 1.0% in the year to July, while Goods increased by 0.2%.  Services, excluding mortgage interest repayments, increased by 1.1% in the year since July 2017.

The CPI excluding tobacco increased by 0.4% in the month of July and rose by 0.6% in the year.  The CPI excluding mortgage interest increased by 0.3% in the month and rose by 0.8% in the year.

Harmonised Index of Consumer Prices

Prices on average, as measured by the EU Harmonised Index of Consumer Prices (HICP), increased by 1.0% compared with July 2017.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+6.9%), Alcoholic Beverages & Tobacco (+2.8%), Transport (+2.2%) and Restaurants & Hotels (+1.8%).  There were decreases in Furnishings, Household Equipment & Routine Household Maintenance (-4.0%), Food & Non-Alcoholic Beverages (-2.1%), Communications (-2.0%) and Miscellaneous Goods & Services (-1.8%).

The HICP increased by 0.4% in the month.  This compares to an increase of 0.1% recorded in July of last year.

The most significant monthly price changes were increases in Transport (+3.3%) and Restaurants & Hotels (+0.7%).  There were decreases in Clothing & Footwear (-5.6%) and Furnishings, Household Equipment & Routine Household Maintenance (-1.5%).  

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

² See background notes for more detail.