Food prices fell in June, helping to slow overall inflation

Grocery shopping. Photo: Getty

The rate of inflation in Ireland slowed significantly in June to an annual growth rate of 1.5%.

Based on the EU’s Harmonised Index of Consumer Prices (HICP), it is estimated to have increased by 1.5% in the 12 months to June 2024 and by 0.3% from May 2024.

By comparison, HICP inflation in Ireland was 2% in the 12 months to May 2024 and the annual HICP increase in the euro area over the same period was 6%.

These numbers mean prices are still rising, extending the gains of recent years, but at a much slower pace.

An important factor contributing to the overall slowdown is the decline in energy prices.

Energy prices are estimated to have fallen by 1% in the month and to fall by 5.6% in the 12 months to June 2024.

Food prices also fell slightly in June – by 0.1%. compared to the previous month – and increased by 2%. in the last 12 months.

If there is a shortage of energy and food, the inflation rate will be higher and reach 2.3% from June 2023.

The EU’s statistical agency Eurostat is scheduled to publish preliminary inflation estimates for June 2024 for the wider EU on July 2.