Vol. 539 No. 2
42 Mr. Durkan asked the Minister for Finance the way in which current inflation rates here compare with those in other EU member states; if, in view of the need to compete effectively for investment within the union, he proposes measures to ensure that inflation rates here do not present an obstacle; and if he will make a statement on the matter. [19016/01]
49 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he will make a statement on the latest inflation figures; the projected inflation figure for the current year; and if he will make a statement on the matter. [19051/01]
108 Mr. Durkan asked the Minister for Finance the EU member states currently showing the highest inflation rates; and if he will make a statement on the matter. [19317/01]
109 Mr. Durkan asked the Minister for Finance the EU member states recording the lowest inflation rates; and if he will make a statement on the matter. [19318/01]
I propose to take Questions Nos. 42, 49, 108 and 109 together.
The latest harmonised index of consumer prices, HICP, inflation rates in the EU member states for May are set out in the following table.
The highest annual rates of inflation as measured by the EU's harmonised index of consumer prices were in the Netherlands, 5.4%, Portugal, 4.9%, and Spain, 4.2%.
The lowest annual rates of inflation were in the UK, 1.7%, France, 2.5% and Denmark, 2.8%.
Annual inflation in Ireland in May 2001 as measured by the consumer price index was 5.4%, while the HICP figure was 4.1%. Increases in food – in part due to foot and mouth disease – and in housing contributed 3.2% to the 5.4% consumer price index annual increase.
The Government is continuing to closely monitor inflation. Budget measures such as the cut in value added tax and excise duties are expected to have reduced the headline rate of inflation by an estimated 0.5% this year.
Inflation is still expected to decline over the second half of this year. At budget time my Department forecast an average CPI increase this year of 4.5%. A revised inflation forecast will be released in my Department's, Economic Review and Outlook, which will be published later this summer.
We must all be vigilant in relation to the upward pressure on inflation from unfavourable wage trends. In my view strict adherence to the terms of the Programme for Prosperity and Fairness is the best way to ensure that wage developments do not discourage direct investment and endanger our competitiveness.
HICP Inflation in the 12 months to May 2001:
|
Netherlands |
5.4 |
|
Portugal |
4.9 |
|
Spain |
4.2 |
|
Ireland |
4.1 |
|
Greece |
3.9 |
|
Luxembourg |
3.8 |
|
Germany |
3.6 |
|
Finland |
3.3 |
|
Sweden |
3.1 |
|
Belgium |
3.1 |
|
Austria |
2.9 |
|
Italy |
2.9 |
|
Denmark |
2.8 |
|
France |
2.5 |
|
UK |
1.7 |
|
Eurozone Average |
3.4 |
|
EU Average |
3.1 |
