Tags: ireland | prices | fall

Ireland's Prices Fall 5.7 Percent But Deflation Slows

Thursday, 10 Dec 2009 01:26 PM

The average cost of goods and services in Ireland has fallen 5.7 percent over the past year but the pace of price drops is slowing, the Central Statistics Office reported Thursday.

Ireland's inflation rate has fallen steadily deeper into negative territory throughout this year, reaching a 78-year high of 6.6 percent in October. The report said November's retreat to a 5.7 percent annual price drop reflected the fact that monthly prices did not move up or down overall.

The report said government-regulated services, particularly education, health and transport, continued to suffer rising prices. But private businesses have been forced to cut prices amid recession and a flight of Christmas shoppers to the neighboring British territory of Northern Ireland, where prices are much lower for many goods.

Ireland's unemployment currently stands at 12.5 percent, net emigration has resumed following the lost Celtic Tiger boom of 1994-2007, and the economy is on course to contract by at least 7.5 percent this year.

The government on Wednesday unveiled an emergency budget that seeks to slash euro4 billion ($6 billion) in spending next year, chiefly by cutting workers' salaries and welfare benefits. Economists say the Irish public's weakened spending power is fueling this year's price drops following more than a decade of relatively high inflation.

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The average cost of goods and services in Ireland has fallen 5.7 percent over the past year but the pace of price drops is slowing, the Central Statistics Office reported Thursday.Ireland's inflation rate has fallen steadily deeper into negative territory throughout this...
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2009-26-10
 

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