Bernard Durkan (Kildare North, Fine Gael)
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78. To ask the Minister for Finance the extent to which measures introduced in this jurisdiction to combat such issues as inflation, here and-or throughout the eurozone, are being successful; and if he will make a statement on the matter. [46042/24]

Bernard Durkan (Kildare North, Fine Gael)
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82. To ask the Minister for Finance the extent to which he continues to observe inflationary tendencies in this economy, with particular reference to the need to identify their origin; and if he will make a statement on the matter. [46046/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 78 and 82 together.

At its peak in the summer of 2022 inflation was close to 10 per cent. Since then, enormous progress has been made in reducing inflation in Ireland with the headline inflation rate at or below 2 per cent since March of this year. Indeed, the latest inflation reading was just 0.1 per cent in October.

Key to this moderation has been the partial reversal of energy prices from extremely high levels. However, the process of disinflation has also reached beyond energy prices, with core inflation (excluding energy and processed food prices) also easing considerably over recent months.

A similar process of disinflation has also been evident throughout the euro area, reflecting the strong and timely actions taken at a European level and across European countries. The latest Eurostat flash estimates point to euro area headline inflation at 2.0 per cent in October, and core inflation (excluding energy, food, alcohol and tobacco) remaining stable at 2.7 per cent.

However, pockets of inflationary pressure remain present particularly in the domestic service sectors both in Ireland and across the euro area. I am also conscious that many households are still facing elevated price levels. That is why Budget 2025 included a cost of living package, designed to support the most vulnerable and ease the financial burden over the winter months. The temporary and targeted nature of the measures taken by Government have been designed to avoid adding to the inflationary burden whilst providing support to those most in need.

Looking forward, inflation is expected to remain on stable trajectory over the near term. That said, given the elevated levels of uncertainty in the external environment, my Department will continue to closely monitor inflation developments both in Ireland and throughout the euro area.