The Consumer Price Index (CPI) rose by 2.0% between August 2024 and August 2025, up from an annual increase of 1.7% in the 12 months to July 2025.

Data released by the Central Statistics Office (CSO) today (September 11) found that this is the first time inflation has been at, or above, 2% since April 2025.

The divisions with the largest increases in the 12 months to August 2025 were food and non-alcoholic beverages, at 5.1%, and clothing and footwear, at 3.4%.

According to the CSO, this is the highest level of inflation for food and non-alcoholic beverages since December 2023, when the annual increase in the division was 5.6%.

The only divisions to record declines in the month were recreation and culture, with a 1.7% decline, and transport with a 0.2% decline.

The CSO outlined that the annual change in food and non-alcoholic beverages costs reflects a rise in prices across a range of products, such as butter, and beef and veal.

Commenting on the release, statistician in the CSO's price division, Anthony Dawson said: "The most significant increases in the 12 months to August 2025 were seen in food and non-alcoholic beverages, 5.1%, and clothing and footwear, 3.4%.

"There were price increases in the 12 months to August 2025 for Irish cheddar per kg, up 93c, a pound of butter, up 91c, two litres of full fat milk, up 28c, an 800g loaf of white sliced pan, up 7c, an 800g loaf of brown sliced pan, up 4c, and spaghetti per 500g, up 1c.

"There was a decrease in the price of a 2.5kg bag of potatoes, down 35c when compared with August 2024," Dawson added.

Consumer prices in August 2025 rose by 0.4% in the month compared with August 2024, when prices were up by 0.1% in the month, according to the CSO.

In August 2025, there was a 0.5% increase in the food and non-alcoholic beverages sector.