Rising retail sales has seen consumer prices begin to drop across Ireland

Consumer prices in Ireland have started to fall as retails sales grow according to new data released by the Central Statistics Office (CSO)

The Consumer Price Index showed that prices had declined by 0.9 per cent for the 12 months ending June 30th 2010. The most notable drops were witnessed for clothing and footwear over the year, down by 11.2 per cent.

The consumer price for non-alcoholic beverages and food fell by 5.4 per cent, with furnishings, maintenance and household equipment dropping by 4.6 per cent.

Ulster Bank economist Lynsey Clemenger believes that despite the latest figures revealing an unforeseen monthly decline in consumer prices, the drop was fairly small and the four consecutive monthly increases that had been seen before, should be taken into account.

Although clothing, food and drink prices had fallen, director of the Small Firms Association Avine McNally, warned that water and energy costs would be more expensive. She said, "Small Irish businesses have taken harsh steps to regain cost competitiveness, yet many costs remain outside their control as they are government influenced. When these costs are passed on to the rest of the economy, competitiveness and jobs are lost."

Other figures released showed a 0.5 per cent fall in the cost of transport, thanks in part to the lower petrol and diesel prices at the pumps, whilst sales of alcohol and tobacco dropped by 0.3 per cent. Prices for miscellaneous services and goods were up by 0.4 per cent due to an increase in the cost of home insurance.

Chief economist for Bloxham, Alan McQuiad said, "Quite clearly, the big winner this year as regards consumer spending will be the motor industry. Already new car sales in 2010 to date are higher than for the whole of 2009. However, other retail sectors are also likely to see positive gains. Assuming the euro zone debt' crisis issue doesn't drag on for a prolonged period and seriously dent consumer sentiment in the process, then there is every chance in our view that overall personal spending and in turn GDP, will be higher in real terms this year than in 2009."

Rising retail sales has seen consumer prices begin to drop across Ireland

By: Rochelle Martinez

POST COMMENT

Abc's Of Commercial Short Sales Analyzing Commercial Short Sales: The Whys And Hows Creating Your Unique Sales Story. The Three Key Elements The Carolina Sunshine Is Stunning Any Time Of Year Find Out How To Nab Low-cost Sales On Grand Stran On the Beach Discount Codes and Sales at Voucherstar Some People Are Under The Misconception That Sales Of Timeshare Property Are Not Subject To Income T Do You Understand Your Salespeople? The South Is Wonderful Any Time Of Year Get Suggestions On How To Score Fantastic Sales On Grand Str Private Jet Sales and You Sales Training Key To A Bright Career Reseller vs Affiliate - What is the Best? How To Make Your Sales Pitch Stand Out From The Rest Fleet Sales are on the Up Again!