Vol. 515 No. 1
149 Mr. Durkan asked the Minister for Finance if he is concerned about the current level of inflation; if he has identified the likely impact of the continuation of recent trends in this regard; and if he will make a statement on the matter. [5569/00]
The most recently published inflation figures for Ireland show a year-on-year increase of 4.0% in the consumer price index – CPI – for January 2000.
The recent increase in the rate of inflation reflects a number of factors which include: the fall in the value of the euro; the increase in crude oil prices which have added over 1% to inflation; and the budget increase in excise duty on tobacco, which was introduced for health promotion purposes, and which has added about 0.75% to inflation.
Excluding the increases in oil prices and excise duty, which do not reflect the underlying trend,
inflation in January was closer to 2%.
It is not expected that the current trends in inflation will be maintained. The latest assessment is that inflation will peak in the near future and fall through the second half of this year. This assumes that there are no further adverse external developments.
I can assure the Deputy that my Department is monitoring developments very closely. The Government remains committed to ensuring that price and pay developments are consistent with sustaining competitiveness.
150 Mr. Durkan asked the Minister for Finance Ireland's position in respect of inflation amongst the euro adoptive countries; and if he will make a statement on the matter. [5570/00]
The most recently published inflation figures for Ireland show a year-on-year increase of 4.4% in the harmonised index of consumer prices – HICP – for January 2000. The most recently published EU HICP was 1.7% for December; this compares with the December HICP figure of 3.9% for Ireland. This was the highest among the euro-11 countries.
