Dáil Éireann debate -
Thursday, 7 Mar 2002

Vol. 550 No. 2

Written Answers. - Inflation Rates.

Noel Ahern

Question:

70 Mr. N. Ahern asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on inflation rates over the past three months and on any evidence that businesses took advantage of the euro introduction to increase prices; the number of complaints on euro price increases which were received; if she has powers to investigate and take action on such complaints; and if she will make a statement on the matter. [8153/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

The annual rates of inflation published by the Central Statistics Office for the past three months are as follows:

	%
January 2002	4.9
December 2001	4.2
November 2001	3.8

Movements in the consumer price index, which is designed to measure the change in the average level of prices paid for consumer goods and services in the same period, were as follows:

	%
January 2002	0.2
December 2001	+0.5
November 2001	0.1

It is not possible to ascertain from the official figures how much, if any, of the increases in prices during this three month period could be attributable to the introduction of the euro. This is not unique to this country. However, the figures clearly do not support suggestions that there were widespread, or excessive increases in prices during the period of the changeover to the euro, or because of its introduction. There is no other evidence available to my Department to suggest that businesses took particular advantage of the introduction of the euro to increase prices.

The Office of the Director of Consumer Affairs received 293 complaints about price increases during the first week of the changeover to the euro. By the middle of February complaints to the director's office about price increases had fallen to about 17 per week. My Department has received about 40 complaints about price rises associated with the introduction of the euro.

Price control as a policy mechanism has not been pursued by any Government since the 1980s. Successive Governments since then have recognised that the encouragement of a competitive environment and promotion of greater price awareness is a far better way of ensuring value for money for consumers than the imposition of price controls. In the absence of active price control, movements relating to prices of goods and services are an ongoing aspect of the market economy.