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The annual inflation rate in Ireland eased to 1.7% in May 2025 from 2.2% in the previous month, marking the slowest pace in five months. The deceleration was mainly driven by a sharp price decline in transport (-2.4% vs 1.8% in April), as well as softer price increases in housing and utilities (2.0% vs 2.2%), restaurants and hotels (2.8% vs 3.3%), and recreation and culture (2.4% vs 4.2%). Conversely, this slowdown was partially offset by faster price growth in food and non-alcoholic beverages (4.0% vs 3.4%), miscellaneous goods and services (2.4% vs 2.1%), and alcoholic beverages, tobacco and narcotics (3.1% vs 2.2). Meanwhile, core inflation — measured by the CPI excluding energy and unprocessed food — declined to 1.9%, the lowest since July 2021. On a monthly basis, consumer prices were unchanged in May, following a 0.4% rise in April.