DAVY VIEW

Ireland’s core inflation moderated to 2.9% in annual terms last month, based on this morning’s flash harmonised index of consumer prices (HICP) result. This was largely due to services inflation cooling to 3.5%. However, headline inflation picked up to 4% due to another acceleration in energy prices, for which inflation has now reached 18.3%. Food prices also accelerated. Looking ahead, inflation remains on track to meet the latest Central Bank of Ireland (CBI) forecasts for this year.