DUBLIN, Feb 22: Irish 12-month inflation surged to 5.2 per cent in January, marking the highest rate since June 2001, official data showed on Thursday.

The reading compared with a rate of 4.9 per cent in December and 4.4 in Nov, according to figures released by the Central Statistics Office (CSO).

On a monthly basis the consumer price index dropped by 0.1 per cent compared with a drop of 0.3pc in January 2006.

The key monthly price changes in January were a 14.3-per cent drop in the price of clothing and footwear as a result of the traditional post-Christmas sales, and a 2.6pc drop in the price of household equipment and household maintenance.

Those decreases were partly offset by a 3.6-per cent increase in the cost of housing, water, electricity and fuels and a 1.0-per cent increase in alcohol and tobacco as a result of tax hikes.

Twelve-month inflation for services was 9.1pc in January, while manufactured goods rose by 0.6pc over the year.—AFP