ireland getting cheaper ...... sort of

ednwireland

Prices falling at sharpest rate in almost 50 years

Homeowners saw repayments fall by €50 to €150 on average as a result of the European Central Bank half-point cut in rates to 2.5 per cent in December. A further cut of 0.5 per cent in January will feed into inflation data for this month.

Consumers also benefited from lower petrol (-4.3 per cent) and diesel (-5.5 per cent) prices last month. Air fares dropped by 9.6 per cent, following a 10 per cent drop in December as global oil prices continue to weaken.

Post-Christmas discounts offered by retailers saw clothing and footwear costs decline 13.2 per cent last month.

Despite the sharp monthly fall in mortgages, fuel and clothing, prices for many Government provided services such as health, education, energy and public transport continue to rise.

Health costs rose 2.8 per cent last month and by 5.8 per cent in the year, while hospital services rose by 10.4 per cent. Over the year education costs rose 5.6 per cent. Increases in bus and rail fares and motor tax saw overall transport prices increase 8.6 per cent in January



anyone else see the problem here a whole rake of gov. controlled fixed costs increasing, making us highly uncompetitive to foreign investment as far i can see.

the same problems just continuing

http://www.irishtimes.com/newspaper/breaking/2009/0212/breaking37.htm

gurramok

Yes, you're right ednwireland. If one checks the source of the inflation since year 2000 for example, the govt controlled section has always gone up year on year espeically through stelath taxes. Hopefully it will reverse soon.
And yes, the private sector element rocketed too but at long last its reversing.

We're heading into deflation for a sustained period of time, a type of adjustment to national competitiveness which is a good thing.

Hopefully it won't last too long as the evidence of Japan on deflation is all too known.

Those workers bemoaning a pay cut should keep an eye on the declining cost of living.

mikemac

ednwireland wrote: »

Homeowners saw repayments fall by €50 to €150 on average as a result of the European Central Bank half-point cut in rates to 2.5 per cent in December. A further cut of 0.5 per cent in January will feed into inflation data for this month.

True but many people have large deposits and don't welcome interest rate cuts at all as it lowers the regular interest they were getting.

As an example Rabobank which would be popular in Irland used to offer 4.5%, possibly it hit 4.8% at one stage.
Now it's 3%, hardly good news for some

I agree with the rest of your post though.

gurramok

But they will gain as their present money will become 'worth' more by deflation, opposite to inflation really.

ejmaztec

If we take it that the cost of living is falling across the planet, Ireland will still be un-competitive when world finances stabilise if energy and other government controlled costs aren't drastically reduced.