Prices remain flat as cost of alcohol and clothing drops after Brexit vote – CSO

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Prices were flat last month when compared with a year earlier.The plunge in the value of sterling as a result of the Brexit vote has dampened inflationary pressure in the economy, experts said.

This is because we import a vast amount of raw materials and finished goods from Britain.

The Central Statistics Office said there was no change in overall prices in the month of December, and no change when prices are compared with the same month a year earlier.

“Prices on average, as measured by the consumer price index, remained unchanged in December compared with December 2015,” the CSO said.

Motor insurance premiums rose by 1.8pc in December, an increase of 8.9pc in the past year.

But the rate of rise is slowing. Rises of up to 40pc in the annual cost of motor insurance had been recorded at one stage last summer.

This prompted the Government to set up a working group to tackle the high costs of cover.

The CSO said prices overall were muted last month due to falls in the cost of alcohol, and clothing and footwear.

Since last year there have been falls in the cost of furnishings and communication prices.

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