Prices rise at fastest pace in almost nine years

​PRICES are rising at the fastest pace in almost nine years as the economy experiences a “nasty” period of inflation.

Prices on average were 2.2pc higher in July compared with the same month last year, figures from the Central Statistics Office show.

Economists said we are now experiencing a “nasty” period of inflation due to post-pandemic shortages.

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Rises in the cost of petrol and diesel and energy price hikes were largely responsible for the spike in inflation.

The rise in the cost of home heating oil, electricity and gas are reflected in the figures.  Higher rents are also a factor contributing to the rise in the consumer price index.

The CSO said restaurants and hotel costs are up due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants and cafes, and an increase in the cost of hotel accommodation.

The ending of the most recent lockdown has seen a surge in people eating and drinking outside the home, and strong demand for hotel accommodation as staycations dominate the market.

Also picked up in the data is a rise in the cost of tobacco products and higher prices for wine sold in supermarkets and off licences.

However, the cost of clothing and footwear fell due to sales.

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