Inflation question

Tragedy

Ok, I get that since 1998
A)Energy prices have been generally rising have a number of knock on effects
B)Massive economic growth has resulted in increased spending power, especially driving house prices
C)House prices have gone up massively, averaging something like two-three times the GDP each year
D)Increased value in Euro
E)In general low interest rates
F)SSIA's maturing last year
All contributed to inflation.

My question is why in the last few years has inflation risen so fast? House price increases slowed down(and decreased last year), GDP growth has been slowing, interest rates have gone up and yet inflation this year is at its highest since 2001 or something similar. I know i'm missing something, most likely obvious but I cant see it.

dotsman

Possibly because it takes a while for these factors to be actually affect inflation.

Or possibly because of the large number of public sector workers who are demanding (and often getting) wage increases despite no increase (or in certain cases a decrease) in productivity/efficiency. The latest strikes by the Air Traffic Controllers is just taking the biscuit. If the media are correct (and I accept they might not be!), I think going on strike when you're already paid €140 a year is a bit of a joke, and wanting a shorter working week (but still do the same hours and claim the rest as massive overtime) is a bit of a joke!

Anyway, I thought inflation is actually decreasing? (after a peak towards the end of last year).

Tragedy

January is indeed down, but last year overall has been the highest in a long time according to CSO.

According to CSO as well, house+energy prices were up 15% for 2007 which I dont understand, surely house prices deflated.

ronbyrne2005

House prices arent included in inflation, rent and mortgage repayments are.

Ekancone

Here is what Irish domestic inflation is based on:

http://www.cso.ie/statistics/consumpriceindex.htm