Prices Continue To Tumble

Government figures released today show that consumer prices have tumbled by 6.5% since September 2008.

According to the Central Statistics Office, the Consumer Price Index decreased by 0.4% in the month, which leaves this year's prices 6.5% lower than last years.

The most significant monthly price changes were decreases in food and non-alcoholic drink, which fell by 1.3% while transport costs, fell 0.9%.

Some products however bucked the trend, with clothing and footwear seeing an increase of 3.6%.

There were increases in alcoholic drinks and tobacco, which both rose by 7.5%, education costs went up 3.9% and health costs increased by 2.5%.

Over the year though most notable changes were seen in decreases in housing, water, electricity, gas and other fuels all of which jointly fell by a huge 28.5%.

Contrastingly, the fall in housing costs over the year do not match the recent patten observed by Housebuilder Abbey, which for the first time since the beginning of the downturn reported improving sales in Ireland.

Speaking at the Abbey National AGM at the beginning of the month, chairman Charles Gallagher said the firm's excess inventory is gradually being cleared amid steady trading in the first few months of the year.

"In Ireland, sales have been improving of late as some confidence returns to the market. In some locations we may soon sell out and we are keen to find further outlets particularly in the Dublin area," he said.

Mr Gallagher said southern England was showing "good levels of business" over recent weeks, adding the London and Dublin based group was on course for a satisfactory outcome this year on current trends.

Last July, the group reported it lost €54.4 million in the 12 months ending on April 30th, 2008, compared with a profit of €16.8 million during the last 12 months.

(DW/BMcC)