Autumn Brings Faster-than-expected Inflation Drop

Inflation is decreasing quickly in autumn. It's falling faster than anticipated.

Irish Times guy, Cliff Taylor, says things will get cheaper for consumers soon.

He said inflation will continue to drop throughout this year and next year.

Wholesale gas prices went down from €300 last year to €23 last Friday. Mr. Taylor thinks this is important for inflation.

"Energy prices will be important," said Mr. Taylor. "The wholesale prices have gone down a lot recently, faster than expected."

This will affect both business and consumer prices.

Inflation went up, but not as much. It was 5.4% in May, a bit less than 6.3% in April. This was reported last week.

Energy prices went down 3.1% in one month. Over a year, they rose by 1.9%.

In May 2022, the EU Harmonised Index of Consumer Prices (HICP) went up by 5.7%. This is excluding energy and unprocessed food.

The cost of food went up by 0.4% in the past month. It rose by 12.5% over the past year.