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wholesale electricity prices fell a further 10 per cent in the year to July, according to the Central Statistics Office (CSO) [[1]]. Wholesale electricity prices have now fallen by 74 per cent as the august 2022 peak [[1]]. Energy prices spiked in 2022 after Russia invaded Ukraine, following a significant increase after Covid [[1]]. Between August 2021 and August 2022, wholesale electricity prices rose by 195 per cent, peaking at almost €400 per MWh compared to an average of about €38 per MWh in 2020 [[1]].
The faster-than-expected softening of inflation in Ireland and across the euro area is largely driven by falling energy prices [[1]]. Inflation in Ireland was 1.7 per cent in July [[1]]. While wholesale prices have decreased, not all savings are being passed on to consumers [[1]]. Electric Ireland, the largest Irish supplier, has reduced prices three times in the last 16 months, but consumers still pay nearly 70 per cent more than pre-pandemic levels [[1]].
Ireland’s reliance on imported gas for approximately half its energy needs contributes to high energy prices [[1]]. According to Eurostat, Ireland was the third most expensive country in the EU for electricity, gas, and fuel, with prices 17 per cent above the EU average [[1]]. Amazon recently postponed a €300 million investment in Dublin, citing energy supply concerns [[1]].
producer prices for manufactured goods increased by 1 per cent in July, while exported goods decreased by 3.9 per cent [[1]]. Food and beverage prices increased by 4 per cent and 2.9 per cent respectively [[1]], contributing to overall inflation [[1]].
