Thursday, May 8, 2008

Irish inflation at 4.3% for April remains stubbornly high

The fall in the annual rate of inflation for Ireland from 5% in March to 4.3% in April is no great cause for joy. Indeed the rate of inflation is likely to rise in May as higher mortgage rates feed into the system- the inevitable consequence of the credit squeeze.
In contrast UK inflation stands at 2.5% in April- no change from March. German inflation fell to 2.6% in April. This is down from 3.3% in March.
Annual inflation in the eurozone dropped to 3.3 % in April. This is down from 3.6 % in March.

The Irish inflation rate is out of line. The failure of the Government to tackle inflation has led to an erosion of competitiveness and spawns demands from unions for large pay rises to compensate for price hikes. It is time for urgent Government action. A laissez-faire attitude is no longer acceptable.

In the words of Richard Bruton Fine Gael Deputy Leader and Spokesperson on Finance. “ It is extraordinary that inflation is still an issue when both the dollar and sterling have fallen by 17% against the euro in the last year. But the problem lies squarely with the Fianna Fáil Government. Ministers have turned a blind eye to consumers' needs, and have failed to enforce adequate levels of competition in the retail and wholesale sector. Irish consumers are furious that identical goods cost more in Ireland than they do in other countries.”

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