Pat Rabbitte
Question:75 Mr. Rabbitte asked the Minister for Finance if he will make a statement on the latest inflation figures; and the projected inflation figure for 2001. [9747/01]
Written Answers. - Inflation Rate.
Bernard J. Durkan
Question:212 Mr. Durkan asked the Minister for Finance if inflation rates are likely to remain as they are notwithstanding any changes in the world economy; and if he will make a statement on the matter. [10040/01]
I propose to take Questions Nos. 75 and 212 together.
Ireland's inflation rate as measured by the EU harmonised index of consumer prices remained at 3.9% in the year to February 2001, well down from the peak of 6.0% reached in OctoberNovember 2000. Inflation as measured by the consumer price index, CPI, has developed similarly, with an annual rate of 5.3% to February compared to its November, 2000 high point of 7.0%. As a very open economy our inflation cannot be independent of external developments. However, as indicated at budget time when my Department forecast an average CPI increase this year of 4.5% – the rate forecast again last week in the Central Bank's spring bulletin – it is expected that inflation will decline significantly further as the year progresses.