Bernard J. Durkan
Question:145 Mr. Durkan asked the Minister for Finance if he has satisfied himself that the Irish economy remains competitive in light of inflationary tendencies; and if he will make a statement on the matter. [10017/03]
Written Answers - Price Inflation.
The rate of inflation in Ireland has remained considerably above the EU average for some time now. The most recent CSO data show that Irish HICP inflation was 5.1% on February 2003, compared with a euro area average of 2.4%.
I am conscious of the fact that Ireland's rate of inflation must be reduced as soon as possible in order to improve our competitiveness and ensure that jobs are not lost. It is essential that services sector inflation, which has been the main driver of domestically generated inflation, moderates. Adherence to the pay increases agreed under the new partnership agreement, Sustaining Progress, together with the implementation of the anti-inflation initiative is extremely important in this context. I am also aware that keeping public expenditure on target will be important if our inflation rate is to moderate and new management and control mechanisms have been put in place to this end.