Written Answers - Price Inflation.

Tuesday, 23 May 2006

Dáil Eireann Debate
Vol. 620 No. 101

First Page Previous Page Page of 383 Next Page Last Page

  291.  Mr. Durkan  Information on Bernard Durkan  Zoom on Bernard Durkan   asked the Minister for Finance  Information on Brian Cowen  Zoom on Brian Cowen   the steps he intends to take to combat inflation; and if he will make a statement on the matter. [19680/06]

Minister for Finance (Mr. Cowen): Information on Brian Cowen  Zoom on Brian Cowen  Inflation, as measured by annual changes in the Consumer Price Index (CPI), was 3.8 per cent in April. A large proportion of the rise in the annual inflation rate is due to external factors such as higher oil prices and recent rises in interest rates by the ECB. Maintaining a moderate rate of inflation remains a key priority of economic policy because of its importance in restoring competitiveness. The Government is taking positive actions to contain inflation by implementing responsible fiscal policies. In addition, we have not increased excise duties for the last two years, and we are promoting greater price competition by removing the Groceries Order. We are also looking for a reasonable wage deal in order to maintain and improve our international competitiveness. We are also investing in public infrastructure which will enhance our ability to produce more goods and services and keep inflation down in the process.

  292.  Mr. Durkan  Information on Bernard Durkan  Zoom on Bernard Durkan   asked the Minister for Finance  Information on Brian Cowen  Zoom on Brian Cowen   the way in which the inflation rate here com[219]pares with euro zone countries; his proposals to address the issue; and if he will make a statement on the matter. [19681/06]

Minister for Finance (Mr. Cowen): Information on Brian Cowen  Zoom on Brian Cowen  Inflation, as measured by annual changes in the Harmonised Index of Consumer Price Index (HICP), in Ireland was 2.7% in April. The euro area average HICP in the same period was 2.4%. For most of the last two years, HICP inflation in Ireland has been broadly in line with the euro area average. Maintaining a moderate rate of inflation remains a key priority of economic policy because of its importance in restoring competitiveness. The Government is doing its bit to contain inflation by implementing responsible fiscal policies. In addition, we have not increased excise duties for the last two years, and we are promoting greater price competition by removing the Groceries Order. We are also looking for a reasonable wage deal in order to maintain and improve our international competitiveness. We are investing in public infrastructure which will enhance our ability to produce more goods and services and keep inflation down in the process.

  293.  Mr. Durkan  Information on Bernard Durkan  Zoom on Bernard Durkan   asked the Minister for Finance  Information on Brian Cowen  Zoom on Brian Cowen   the extent to which his Department monitors the causes of inflation, particularly that which does not show up in the consumer price index; the action taken arising therefrom; and if he will make a statement on the matter. [19682/06]

Minister for Finance (Mr. Cowen): Information on Brian Cowen  Zoom on Brian Cowen  My Department monitors the main economic variables which drive inflation such as oil prices, exchange rates, interest rates and the level of demand in the economy. The Director General of the Central Statistics Office (CSO) has sole responsibility for and is independent in deciding the statistical methodology and professional standards to be used in compiling the Consumer Price Index (CPI). Maintaining a moderate rate of inflation remains a key priority of economic policy because of its importance in restoring competitiveness. The Government is doing its bit to contain inflation by implementing responsible fiscal policies. In addition, we have not increased excise duties for the last two years, and we are promoting greater price competition by removing the Groceries Order. We are also looking for a reasonable wage deal in order to maintain and improve our international competitiveness. We are also investing in public infrastructure which will enhance our ability to produce more goods and services and keep inflation down in the process.

  294.  Mr. Durkan  Information on Bernard Durkan  Zoom on Bernard Durkan   asked the Minister for Finance  Information on Brian Cowen  Zoom on Brian Cowen   the action he has taken or proposes to take to combat hidden inflation that has not shown up [220]in the consumer price index; and if he will make a statement on the matter. [19683/06]

Minister for Finance (Mr. Cowen): Information on Brian Cowen  Zoom on Brian Cowen  The Director General of the Central Statistics Office (CSO) has sole responsibility for and is independent in deciding the statistical methodology and professional standards to be used in compiling the Consumer Price Index (CPI). Maintaining a moderate rate of inflation remains a key priority of economic policy because of its importance in restoring competitiveness. The Government is doing its bit to contain inflation by implementing responsible fiscal policies. In addition, we have not increased excise duties for the last two years, and we are promoting greater price competition by removing the Groceries Order. We are also looking for a reasonable wage deal in order to maintain and improve our international competitiveness. We are also investing in public infrastructure which will enhance our ability to produce more goods and services and keep inflation down in the process.


Last Updated: 03/11/2010 23:27:03 First Page Previous Page Page of 383 Next Page Last Page