Ireland's Inflation Rate Eases to 3.5% in May, Driven by Energy Price Drop
Ireland's annual inflation rate eased to 3.5% in May, down from 3.6% in April, according to a Central Statistics Office flash estimate. This moderation was primarily due to a 4.3% monthly drop in energy prices, likely influenced by government fuel excise cuts. However, energy prices remain 11.9% higher year-on-year.
Ireland's annual inflation rate saw a slight moderation in May, registering a 3.5% increase in consumer prices compared to the same month last year. This preliminary estimate, released by the Central Statistics Office (CSO), follows a 3.6% rise observed in the year to April.
The figure is based on the harmonised index of consumer prices (HICP), the European Central Bank's preferred inflation metric. The primary factor contributing to this overall easing was a month-on-month decline in energy prices, which fell by 4.3% compared to April. This reduction is likely attributable to the Irish Government's fuel excise cuts, implemented in response to a surge in oil prices following the US-Iran conflict.
Despite the monthly decrease, energy prices remain significantly higher year-on-year, with the CSO estimating an 11.9% increase in this category since May 2025. Conversely, all other HICP sub-categories experienced month-on-month price increases. Unprocessed food became 0.5% more expensive, and processed food rose by 0.2%.
Annually, processed food prices are up 1.3%, while unprocessed food shows a 2.5% increase. A flash estimate for the broader eurozone is anticipated next week, and the CSO is scheduled to release final, more detailed consumer price data for Ireland on June 11.