Prices fall in January as inflation edges closer to ECB’s 2% target

The price of consumer goods fell 1.4 per cent this month, driving the annual inflationary rate down to 2.7 per cent

Energy prices are estimated to have dropped 0.8 per cent in the first four weeks of the year, and decreased by 7 per cent overall over the 12 months. Picture: Getty

The price of consumer goods fell by 1.4 per cent between December and January, according to a new flash estimate from the Central Statistics Office (CSO), in another promising sign inflation is retreating.

According to preliminary figures published as part of the EU’s Harmonised Index of Consumer Prices (HICP), consumer prices in Ireland have grown by 2.7 per cent in the year to January 2024, but are down month-on-month.

This compares with HICP inflation of 3.2 per cent in the 12 months to December 2023 and an annual increase of 2.9 per cent across the eurozone in the same period, as economies across Europe edge closer to the European Central Bank’s inflationary target of 2 per cent.