FX.co ★ Ireland’s Inflation Slows Sharply in May

Ireland's EU Harmonized Index of Consumer Prices (HICP) experienced a year-on-year increase of 1.4% in May 2025, a decrease from April's 2.0% rate, based on preliminary data. This represents the lowest inflation rate in three months and remains significantly under the European Central Bank’s target of 2.0%. The reduction in the inflation rate was predominantly attributed to a 2.6% year-on-year drop in energy prices, which was only partially offset by a 4.1% increase in food prices. Additionally, the core HICP, which excludes energy and unprocessed food components, saw a slowdown, with a rise of 1.8% compared to 2.5% in April, indicating a reduction in underlying inflationary pressures. On a monthly comparison, harmonized consumer prices remained steady in May, following a 0.4% rise in the preceding month.