Dáil Éireann Debate, Tuesday - 29 September 2015
286. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which any inflationary tendencies have been detected throughout the economy; if any corrective action is required; and if he will make a statement on the matter. [33364/15]
View answerThe annual rate of inflation, as measured by Harmonised Index of Consumer Prices (HICP), was 0.2 per cent in August, representing the fourth successive month of modest positive inflation.
The main factor depressing inflation over the past year or so has been energy prices. Core inflation - which strips out energy and unprocessed food - is a better indication of underlying developments in the domestic economy and has averaged around 1 per cent over the past year. Low consumer price inflation is supporting household disposable income and is one of the factors supporting consumption growth.
It is anticipated that the annual rate of inflation will pick-up gradually as the domestic recovery continues, supported by quantitative easing, to rates consistent with price stability, i.e. close to but below 2 per cent, without the need for corrective action.
