Inflation rose by 0.7pc in August

HIGHER rents, more expensive home heating oil, electricity and gas have all contributed to an overall rise in inflation.

New figures show prices were up 0.7pc in August compared with the same month last year.

The Central Statistics Office said there were also rises in the costs of alcoholic drinks and food bought in pubs and restaurants.

But the cost of health and motor insurance premiums fell.

Health insurers have been engaged in a price war, which was kicked off by the Vhi. And some drivers are seen motor premiums fall after years of sustained rises.

Consumers have also experienced lower prices for appliances, along with articles and products for personal care, the CSO said.

Higher crude oil prices are pushing up motor and fuel costs, with energy providers increasing prices.

Home-heating oil rose by 26pc in the year to August. Although this is a slight slow-down from the rate of increase in the previous two months it still represents a robust rise.

Diesel is 13.6pc dearer than a year ago, with petrol price rising by 11pc in the year.

Overall prices have been rising at their fastest annual pace in more than a year in since the summer as higher oil prices impact on costs.

Online Editors