Core inflation edges up

Although the overall inflation rate from the April Consumer Price Index was unchanged at 0.5% what we have termed the ‘core’ rate of inflation edged up.  The measure excludes mortgage interest (down 6.8% in the year) and energy products (almost unchanged in the year with a drop of 0.1%).  This represent about 15% of the overall index.  The overall and ‘core’ inflation rates for the past few years have been like this.

Although it increased in April, at 0.9% the core rate of inflation is still below the levels it was at for most of the past year.  Finally here is an interesting chart from Danske Bank which compares the Irish Harmonised Index of Consumer Prices (HICP) inflation rate, which also excludes mortgage interest, with the euro area average.