Ireland’s Inflation Rate Eases to 2.7% in January 2026

Ireland’s annual inflation rate slowed to 2.7% in January 2026, according to the latest figures from the Central Statistics Office (CSO). This marks a slight decrease from the 2.8% recorded in December 2025 and the 3.2% seen in November 2025.

Inflation Trends in Ireland and the Eurozone

The easing of inflation in Ireland mirrors a broader trend across the Eurozone, where the rate fell to 1.7% in January, down from 2% the previous month. The Harmonised Index of Consumer Prices (HICP) is used to measure inflation across the Eurozone, ensuring a consistent methodology across member states (European Central Bank).

Key Drivers of Inflation

The CSO reported that energy prices remained broadly stable, with a slight decrease in transport prices. Still, certain sectors experienced significant price increases. Food prices rose by 3.9%, while insurance and financial services saw a substantial increase of 6.1%.

Significant Price Increases

Over the year to January 2026, the most notable price increases were observed in:

• Education: Up 8.9%
• Clothing and Footwear: Up 7.3%

Price Decreases

Furnishings, household equipment, routine household maintenance, and transport were the only categories to show a decline in prices compared to January 2025, decreasing by 0.6% and 0.1% respectively.

Specific Price Changes for Common Goods

The CSO likewise published data on the average prices of selected goods. Notable changes include:

• Irish Cheddar (per kg): Up 45 cent
• Pound of Butter: Up 34 cent
• 2 Litres of Full Fat Milk: Up 6 cent
• 800g Loaf of White Sliced Pan: Up 4 cent
• Sirloin Steak (per kg): Up €4.68
• 2.5kg Bag of Potatoes: Down 22 cent
• 800g Loaf of Brown Sliced Pan: Down 1 cent

Economic Outlook and Forecasts

Gerard Brady, Chief Economist at Ibec, noted that while inflation rose in the latter half of 2025, peaking at 3.2% in November, it has since “moderated quickly and will continue to do so in the year ahead.” He anticipates an overall inflation rate of 2.3% for 2026.

Thomas Pugh, Chief Economist at RSM Ireland and RSM UK, attributed the recent slowdown to “more favourable base effects” impacting food and energy inflation, as well as the appreciation of the euro against the dollar and sterling, which has helped lower import prices. However, he cautioned that rising oil prices could lead to a resurgence in fuel inflation.

Chris Beauchamp, Chief Market Analyst at IG, highlighted that the slowing annual inflation and the sharp month-on-month drop are “good news for the economy,” suggesting that November’s peak has passed. This trend aligns with similar data from the UK, indicating easing price pressures for consumers in both regions.

Consumer Price Index Information

For more detailed information on the Consumer Price Index (CPI) and its components, you can refer to the Central Statistics Office and the International Monetary Fund. You can also use an inflation calculator to see the buying power of money change over time.