Phil Hogan
Question:241 Mr. Hogan asked the Minister for Finance if he will quantify the impact of the recent oil price increases on the rate of inflation; and if he will make a statement on the matter. [3211/00]
Written Answers. - Price Increases.
The recent increases in international oil prices are having an impact on inflation. The energy products index of the CPI – which accounts for 9.1% of the overall index – rose by 9.4% in the year to December 1999. This added just under 0.9% to headline inflation.
The full impact of the recent oil price increases have not yet been felt. Manufacturing output prices increased by more than 5% in December, in part as a result of higher fuel input costs. These higher prices could affect the CPI in due course.
Of course, a stabilisation of, or reduction in, oil prices will reduce future inflation. In addition, any improvement in the performance of the euro will help in restraining these external inflationary pressures.