Ireland’s Inflation Holds Steady at 2.7% in February, Food Prices Rise

Ireland’s annual inflation rate remained unchanged at 2.7% in February, according to the Central Statistics Office (CSO). While overall price increases have stabilized, consumers are facing higher costs for essential food items and certain services, with notable increases in education and insurance.

Inflation Overview: February 2026

The CSO’s latest report, released on March 12, 2026, indicates that the Consumer Price Index (CPI) rose by 2.7% between February 2025 and February 2026. [CSO February 2026 CPI] This figure mirrors the year-on-year inflation rate recorded in January 2026. Monthly consumer prices increased by 0.9% between January and February 2026.

Key Drivers of Inflation

• Education Services: The cost of education services saw the largest increase, rising by 8.9% over the year. [RTE – CSO Inflation Figures] This increase follows adjustments to the student contribution fee, which was reduced by €500 this year after a larger reduction of €1,000 the previous year.
• Insurance & Financial Services: Premiums in this sector increased by 6.0%, driven by rate hikes from major healthcare providers like VHI Healthcare, Laya Healthcare, Irish Life Healthcare, and Level Health.
• Food Inflation: Food prices increased by 3.4% year-on-year. [CSO February 2026 CPI]

Rising Food Costs

Several staple food items experienced price increases:

• Sirloin Steak: Increased by €4.37 per kilogram, reaching an average price of €21.76.
• Irish Cheddar: Rose by 30c per kilogram to €11.44.
• Butter: Increased by 3c per pound to €4.46.
• White Sliced Pan: Increased by 3c to €1.67 for an 800g loaf.

However, some food items saw price decreases, including potatoes (down 20c for a 2.5kg bag) and full-fat milk (down 2c for 2 liters). [CSO February 2026 CPI]

Price Changes in Licensed Premises

The cost of a pint of stout in pubs rose by 25c to €6.18, while a pint of lager increased by 26c to €6.58. [RTE – CSO Inflation Figures] Take-home lager prices saw a slight decrease (down 1c to €2.41 for a 50cl can), while cider prices increased (up 2c to €2.71 for a 50cl can).

Other Economic Indicators

The CSO also released unemployment figures for February 2026, reporting a rate of 4.6%, unchanged from January 2026. [CSO Monthly Unemployment February 2026] The number of people on the live register fell to 170,700. [Irish Times – Live Register Figures]

Looking Ahead

Economists note that the February inflation figures do not yet reflect the impact of recent geopolitical events in the Middle East, which are expected to put upward pressure on energy prices. [RTE – CSO Inflation Figures] Kate English, chief economist at Deloitte Ireland, suggests that next month’s inflation data could show a significant shift depending on the duration of the conflict and its effect on fuel costs.