According to the Consumer Price Index (CPI), inflation rose by 0.3 percentage points from October, when an annual increase of 2.9pc was recorded. The previous peak in the CPI, in February 2024, was 3.4pc.
The divisions with the largest price rises in the last 12 months were education, up almost 9pc due to an increase in third-level fees that took effect in October, and clothing and footwear, up by 4.4pc.
Food and non-alcoholic beverages were up 4.3pc, while the restaurants and hotels division was up 3.6pc. The only division to show a decrease was furnishings, household equipment and maintenance, down by 0.6pc.
Consumer prices did decrease by 0.2pc last month. During November of last year, however, prices fell by 0.5pc in the month.
Thomas Pugh, chief economist at the consulting firm RSM, said that the 3.2pc rate probably represents a peak, and that lower inflation will follow. He expects that the rate will drop to 2.6pc in December.
News in 90 Seconds – 11 December 2025
“The recent rise in inflation has been driven by energy inflation, which is now 3.3pc up year-on-year, up from 2.7pc in October, and is now firmly positive after being negative back in August,” Mr Pugh said.
“Some of that is being driven by base effects as energy prices were falling sharply last year, but pump prices rose strongly again in November as firms continue to pass on the latest increase in the carbon tax to consumers.”
Services inflation is up 4pc, the highest since March 2024, in part because a huge 7pc drop in airfare prices last year wasn’t repeated this month.
Food inflation has dropped to 4.3pc from 4.5pc, suggesting that the recent rise in agricultural commodity prices may have peaked, and that a stronger euro is putting downward pressure on the cost of imports.
The National Average Prices for selected goods and services for November 2025 was also published today. Anthony Dawson, a statistician in the CSO, said: “There were price increases in the 12 months to November for Irish cheddar per kg (+62c), a pound of butter (+55c), two litres of full fat milk (+11c), an 800g loaf of white sliced pan (+9c), an 800g loaf of brown sliced pan (+1c), and spaghetti per 500g (+1c).
“There was a decrease in the price of a 2.5kg bag of potatoes (-22c) when compared with November 2024.”
Geraldine Kelly, a spokesperson for Gallagher in Ireland, said that grocery bills are continuing to rise, with key items such as milk, meat and butter showing increases well above average. Chocolate is up 11.5pc, which will be particularly noticeable before Christmas.
“Energy costs are adding further pressure,” Ms Kelly said. “Home heating oil prices have surged in recent weeks, and with stormy weather and falling temperatures, households have little choice but to use more heat. Electricity price increases from several suppliers are also reflected in today’s report, leaving many families with few options to absorb these extra charges.”
Separate figures show that Irish households still have a relatively healthy savings cushion to protect themselves against inflation, with a 14.8pc saving rate recorded in the last quarter.
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