The rate of inflation dipped fractionally, to 3.6 per cent last month as energy inflation slowed, but rising costs continued to put pressure on consumers and push up the cost of living.The consumer price index had hit 3.7 per cent in April, the highest since early 2024.Data from the Central Statistics Office showed inflation was fuelled by education charges, which rose 8.9 per cent over the past 12 months, and clothing prices, which increased by 7.4 per cent. The increase in education costs was associated with a change in third-level education charges that came into effect in October last year. Housing, water, electricity and gas rose 7.1 per cent over the same period. Only the furnishings, household equipment and routine household maintenance subsector showed a decline, falling 0.6 per cent compared to the previous year. Excluding energy and unprocessed food, the core consumer price index rose by 2.9 per cent over the year, the CSO said.On a monthly basis, the index fell 0.1 per cent compared to April with the largest decreases coming in recreation, sport and culture, where prices were down by 2.6 per cent, and a 1.1 per cent retreat in the cost of housing, water and fuel. Rises were seen in clothing and footwear prices, which were up 1.2 per cent, alongside a 0.8 per cent rise in the cost of insurance and financial services. The latest figures come in advance of an expected quarter point hike in interest rates by the European Central Bank later today – the first since September 2023 – as the bank tries to rein in rising prices. That is expected to be followed by at least one more rate increase in the coming months. “Inflation will ease a little next month as the recent drop in oil prices will further weigh on energy inflation,” said Thomas Pugh, chief economist at audit, tax and consulting firm RSM Ireland. “Further ahead, CPI inflation will jump again in August as ECB rate hikes push up mortgage interest inflation and utility bills start to rise.“Indeed, mortgage inflation has already jumped up from 5.2% in February to 7.7% as the expectation of ECB rate hikes pushes up mortgage rates,” he said.“If the Government allow temporary cuts to fuel excise duty to expire, this will push inflation even higher,” he said. The CSO also published national average prices for May, which showed prices had risen for meat and cheese over the past year, with the latter up 8 cent per kilogram and sirloin steak rising €1.01 per kilo. There was a fall in the cost of butter, bread and other staples compared with the previous year. “The national average price for a litre of diesel in May 2026 was €1.99, an increase of 33 cent on the same time last year,” said Anthony Dawson, statistician in the CSO’s prices division. “Petrol prices rose by 17 cent to €1.87 a litre.”