Vol. 530 No. 6
210 Mr. Durkan asked the Minister for Finance if the Central Bank of Ireland has given any indication as to desirable inflation levels; if such views coincide with those of the European Central Bank; and if he will make a statement on the matter. [4960/01]
I would wish to see inflation kept to the minimum possible. Most of the recent increase in inflation was due to external factors. These are now moving in our favour and the measures I took in the budget have reinforced this downward trend. The Central Bank in its latest quarterly bulletin, published in December 2000, referred to the increase in inflation during 2000 and the emergence of inflationary pressures. I am also aware of similar concerns expressed by the European Central Bank. According to the ECB: ". . . price stability shall be defined as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for the euro area of below 2%". Price stability according to this definition is to be maintained in the medium term.
Question No. 211 answered with Question No. 67.
