The annual rate of inflation remains unchanged at 2.7 per cent for the third month in a row, according to new data from the Central Statistics Office (CSO).
The figures show that consumer prices in July also showed no change at 2.7 per cent.
The most significant monthly price changes were increases in housing and utilities which were up 0.9 per cent due primarily to higher mortgage rate increases and in food and non-alcoholic beverages, up 0.7 per cent.
During July there was a 3.6 per cent drop in prices for clothes and footwear due to the summer sales and a 0.7 per cent decrease in furnishings, household equipment and routine household maintenance prices.
On an annual basis the most notable prices changes were recorded in housing and utilities, which were up 10.3 per cent and in miscellaneous goods and services, up 7.2 per cent. There was also a 3.5 per cent jump in transport costs over the year and a 3.4 per cent rise in health costs. Food and non-alcoholic beverages costs rose by 1.1 per cent
Over the 12 month period under review, there was a 2.9 per cent fall in the cost of furnishings, household equipment and routine household maintenance prices and a 1.3 per cent decline in education costs.
The annual rate of inflation for services was 4 per cent in the year to July, while goods rose by 1 per cent.
The Consumer Price Index (CPI) excluding tobacco for July decreased by 0.1 per cent in the month and was up by 2.7 per cent in the year. The CPI excluding energy products remained flat in July but increased by 1.9 per cent on an annual basis. The CPI excluding mortgage interest decreased by 0.3 per cent in the month and rose by 1.3 per cent in the year.
The latest figures show the EU Harmonised Index of Consumer Prices (HICP) decreased by 0.2 per cent in July, compared to a decrease of 0.1 per cent recorded in the same month a year earlier.
The annual rate of inflation, as measured by the HICP, was 1 per cent higher last month compared with July 2010.
Ibec chief economist Fergal O'Brien said the latest figures provided evidence that the VAT reduction was being passed on to consumers but said it would take a few more months for the index to fully reflect this.
He also said that consumers and businesses could draw further comfort from the fact that there will likely be further falls in inflation over the next year or so. "The overall outlook for inflation is now much more benign and price rises are likely to be limited over the coming year or so. The CPI increase is likely to average about 2.5 per cent this year and no more than 1.5 per cent in 2012."
However, lobby group Isme accused the Government of reneging on its responsibilities by failing to tackle increased costs.
Chief executive Mark Fielding said that unless action was taken to address cost competitiveness, more companies would go to the wall. “The constant theme among businesses, struggling to survive, is the increasing costs of doing business in this country, in particular the costs of rates, rents, energy, transport, labour and local charges," he said.
"Unfortunately, there does not seem to be the appetite at Government level to introduce the reforms necessary to tackle these rising business costs. While lofty promises from well scripted speeches outline plans to address these issues, little has been done to date.”
