Dáil Éireann debate -
Wednesday, 31 May 2000

Vol. 520 No. 2

Written Answers. - Inflation Figures.

Jack Wall

Question:

106 Mr. Wall asked the Minister for Finance if his attention has been drawn to the rise in basic food products due to the rise in inflation and the introduction of the statutory minimum wage; if his attention has further been drawn to the fact that senior citizens and families on social welfare payments are finding it very difficult to cater with such rises; the plans, if any, he has to deal with the matter; and if he will make a statement on the matter. [15656/00]

Minister for Finance (Mr. McCreevy):

The most recently published inflation figures post-date the introduction of the national minimum wage, and indicate that the food sub-index of the consumer price index rose by 2.3% in the year to April 2000. This is substantially lower than both the headline rate of inflation and the increases in social welfare payments announced in the recent budget.

The rate of increase in food prices has slowed substantially since the beginning of 1999. The rate of increase fell from a peak of 4.8% in February 1999 to 2.9% by the end of the year. This decrease mainly reflected falls in the prices of potatoes and fresh fruit and vegetables as supply conditions improved in 1999 following poor harvests in 1998.

Food inflation has continued to moderate this year, from 2.9% in January to 2.3% in April, reflecting falls in the prices of fruit and vegetables and more modest price increases for bread and bakery products and other processed food. Increases in meat and dairy product prices continue to be substantially lower than headline inflation.