The rate of inflation dropped in 7pc in Ireland in March, according to the European statistics agency, Eurostat.

Inflation across the euro area eased last month as a drop in energy prices took some of the intensity out of the pace of price increases but food and some other bills are rising rapidly. 

The EU’s preferred measure of Harmonised Index of Consumer Prices (HICP) consumer inflation eased to 6.9pc in March in the euro area from an annualised rise of 8.5pc recorded a month earlier, However, what’s dubbed core inflation excluding volatile factors like energy very remains high piling pressure on ECB policy makers to try to force it down using interest rate hikes. 

In Ireland the HICP pace dropped to 7pc in March from 8.1pc in March. The rate is higher but the trend is similar to what Ireland’s CSO published last week using its preferred consumer price index (CPI). It rose 7.7pc in March, down from 8.5pc in February.

The ECB's expected interest rate hike in May is tipped to be either quarter or half of a percentage point and not likely to be its last this year.

With energy prices falling ECB policy makers’ concern has shifted to services inflation which tends to be driven by factors including wage rises that are hard if not impossible to row back and has increased to 5.1pc.

Food inflation is now well into double digits as well, the Eurostat data shows.