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Dáil Éireann debate -
Thursday, 13 Dec 1979

Vol. 317 No. 9

Written Answers. - Consumer Price Index.

122.

asked the Minister for Economic Planning and Development the increase in the cost of living index within the past 12 months and if the present inflationary trend is likely to continue.

123.

asked the Minister for Economic Planning and Development the latest available estimate of the rate of inflation for the calendar year 1979.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 122 and 123 together.

I presume that when Deputy Murphy refers to the cost of living index, he is in fact speaking of the consumer price index. The latest published figures show that between mid-August 1978 and mid-August 1979, the consumer price index rose by 13.6 per cent. It is expected that the quarterly increase in consumer prices to mid-November will be about 3 per cent as compared with a rise of 4.1 per cent in the quarter to mid-August. On this basis the average increase in the consumer price index in 1979 will be about 13 per cent.

The prospects of a deceleration in the rate of increase in consumer prices in 1980 will depend critically on our response to the impact of the oil price rises occurring in 1979. Attempts to seek compensation for these energy price rises will simply result in even higher inflation rates. The only practical way of compensating for higher external prices is to raise productivity and accelerate growth.

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