Friday, September 14, 2012

14/9/2012: Irish CPI for August - detailed charts

With some delay, here's the analysis of latest Consumer Price Inflation data for Ireland for August 2012:

Summary table of monthly and annual changes
Note: I will blog on overall inflation trend separately in the next post.

Here are changes by sector, including notable changes by sub-sector.

Monthly inflation:

Big spikes are in:

  • Clothing and Footware +6.6%
  • Mortgage Interest -3.2% (although CSO does not separate the differences between the ARM and trackers, which have been moving in the opposite directions)
  • Transport +1.6% (Petrol up 3.5%, Diesel up 4.0%
  • Transport Services +0.5% driven by Air Transport (+1.0%)
Year on year comparatives are more revealing:

The above clearly shows that most of the inflation on annual basis remains concentrated in the state controlled sectors (either via regulatory price hikes or direct state taxation and charges effects or via semi-states hiking prices on their own). Note that even in the 'Other Services' category, the inflation is driven by household charge being added in April 2012.

The Government strategy is clear, albeit, unlike the previous Government, the current one stays away from openly declaring this: milk Irish consumers for every penny they got via higher charges and state-captured prices. In effect, much of the price increases not caused by direct state taxation are still a form of taxation as the Government collects higher VAT and other taxes on those goods and services, provision of which it controls via semi-state bodies.
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