Inflation in Ireland rises to 3.6% as energy costs climb

A rise in the cost of energy has pushed the rate of inflation in Ireland to 3.6%, according to figures published on Monday.

The EU Harmonised Index of Consumer Prices (HICP) for Ireland is estimated to have risen by 3.6% in the 12 months to March.

This compares with a rise of 2.5% in the 12 months to February 2026 and an annual increase of 1.9% in costs across the Eurozone in the same period.

Energy prices are estimated to have risen by 11.1% in March and were up by 12.3% over the 12 months.

Food prices are estimated to have decreased by 0.3% in the last month and gone up by 2.3% in the last 12 months.

The cost of services had also risen by 0.9% in a month and are up by 3.3% in the 12 months to March.

Excluding energy and unprocessed food, the prices are estimated to have grown by 2.6% since March 2025.

Anthony Dawson, statistician in the Prices Division of the Central Statistics Office, said the prices were measured before the Irish government’s energy measures.

“Looking at the components of the flash HICP in Ireland for March 2026, energy prices are estimated to have increased by 11.1% in the month and risen by 12.3% since March 2025.

“These increases in energy prices may have been influenced by recent events in the Middle East.

“These prices were collected in mid-March and before the Government measures on energy costs were introduced.”

It comes after Bank of Ireland warned that inflation could rise to 4%, while the ESRI has said it forecasts inflation at 3.2% for 2026 and 2.7% in 2027.

It estimates that the first round impact of higher petrol, diesel and home heating oil prices will push up CPI inflation from 2.7% in February, to 3.5-4% through March and April.

Government action taken to cut excise duties “may dilute” the rise in prices, it said.

The average rate of inflation was at 2.1% in last year.

The Central Bank of Ireland had projected inflation for 2026 to be at 2.9%, and 1.9% for 2027.