Key insights
- Irish inflation remains elevated at 3.6%, while GDP contracted by 2.0% in Q1. Retail sales showed positive growth. While focused on Ireland, persistent inflation in developed economies can influence global monetary policy expectations, indirectly impacting US equities. The GDP contraction, though potentially distorted by multinational activity, adds to concerns about global growth.
Investing.com -- Irish consumer price inflation remained at a two-and-a-half-year high of 3.6% in April, matching the rate from March, according to a flash estimate of the Harmonised Index of Consumer Prices released on Wednesday.
Prices increased 0.4% month-on-month in April, down from 1.8% in March. Core inflation, which excludes energy and unprocessed food, slowed to 2.3% year-on-year from 2.6% in March.
The finance ministry forecast last week that inflation could average between 3.3% and 4.6% this year, with the range dependent on how the Middle East conflict affects energy prices.
Separate data showed Ireland’s gross domestic product fell 2.0% in the first quarter compared to the previous three months, representing a 6.0% decline year-on-year.
Retail sales volumes rose 1.6% year-on-year in March and increased 0.2% month-on-month. February’s retail sales volumes were revised to show a 1.3% year-on-year increase, up from the previously reported 0.8% gain. The month-on-month decline for February was revised to 0.6% from 0.8%.
The preliminary GDP estimates do not include modified domestic demand, the measure officials prefer for tracking economic growth because it removes distortions caused by foreign multinationals in Ireland’s GDP figures.
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