Inflation is going to fall faster than expected coming into the autumn months. 

That's the prediction of Irish Times economics correspondent Cliff Taylor, who believes the cost of consumer goods will sharply decrease. 

“We can inflation expect to fall now pretty consistently for the rest of the year and into next year,” he told Newstalk.  

According to Mr Taylor, wholesale gas prices, a key indicator of inflation, have fallen from a peak of over €300 last year to €23 last Friday. 

“The real thing to watch will be energy prices,” Mr Taylor said. “Wholesale energy prices on the markets have fallen very sharply over the last few months and more rapidly than most people would have guessed.” 

“That's going to start knocking on to business and consumer prices.” 

Inflation in May

Last week, it was reported inflation continued to rise but slowed to 5.4% in May, compared to 6.3% in April. 

Energy prices are estimated to have decreased by 3.1% in the month and increased by 1.9% over the 12 months to May 2023. 

The EU Harmonised Index of Consumer Prices (HICP) excluding energy and unprocessed food is estimated to have risen by 5.7% since May 2022 

Food prices are estimated to have increased by 0.4% in the last month and are up by 12.5% in the last 12 months.