Vol. 555 No. 2
354 Mr. R. Bruton asked the Minister for Health and Children his estimate of the average index of inflation between the last quarter of 2001 and the last quarter of 2002 in the cost of employment goods and services which make up his Department's expenditure. [18426/02]
In the time period referred to, the consumer price index has shown an increase of 4.5% and pay costs have increased by 4%, since 1 October last, as a result of the final agreed increases under the Programme for Prosperity and Fairness. These have a general impact on health spending.
In general, health inflation can be regarded as about twice the normal rate of inflation. Key drivers include wage increases, staff increments, the high cost of new technology and drugs, an ageing population and increased demand-consumption of health care.
The consumer price index for September 2002, as published by the Central Statistics Office, shows an annual increase of 10% for the health sector. The definition used by the Central Statistics Office is that "Health includes medical products, appliances and equipment, hospital charges and out-patient services supplied by doctors (including General Practitioners), dentists, opticians, practitioners of alternative and complementary medicine and paramedical services".
