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Briefing

Ireland: Inflation

Appears in: Europe, Macroeconomy, Eurozone, Ireland, Monetary Policy and Inflation

Critical Issues

Background:

In the decade leading up to 2008, Irish annual inflation consistently rang in above 3% driven in particular by rapid growth. After 2004, the increase in the Irish consumer prices index started to slow. Inflation, however, continued to be propped up by rising commodity prices, a housing boom and high interest rates. In 2008, a spike in oil prices further pushed inflation upwards. With the cooling of the global economy, infation declined dramatically in ireland. Currently, the Irish inflation rate is the lowest in the eurozone.

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