Dáil Éireann Debate, Thursday - 5 October 2023
143. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains aware of the needs of the people throughout the country, given the continued challenge of inflation and cost of living increases; the extent to which he can assist in these areas; and if he will make a statement on the matter. [43075/23]
View answer202. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he continues to monitor cost-of-living increases in the context of the forthcoming budget; the extent to which he remains conscious of the cost of living and price increases affecting people in both rural and urban settings, with a view to addressing these issues in the most realistic and effective ways; and if he will make a statement on the matter. [41344/23]
View answerI propose to take Questions Nos. 143 and 202 together.
Government has responded swiftly and decisively to the cost of living challenges facing people in both rural and urban settings. Some €12 billion in fiscal supports have been made available aimed at supporting businesses and households most adversely impacted by inflation. The targeted and temporary nature of many of the cost of living supports are an explicit effort to prevent inflationary pressures being compounded by government intervention.
Despite the magnitude of the inflationary pressures we have faced over the last year, the Irish economy has remained resilient. The labour market has performed remarkably strongly, with near record-low levels of unemployment and over 2.6 million people in employment.
Despite some easing in price pressure over recent months, inflation remains persistently high. This persistence is indicative of broad based inflationary pressures and reflects capacity constraints in both our housing and labour markets, which are becoming increasingly binding.
While the economy has shown remarkable resilience during this inflationary period, the Government is acutely aware of the continued adverse impacts of inflation on households and businesses. Government continues to monitor risks to the outlook on an ongoing basis and stands ready to take the necessary steps to mitigate these risks.
As part of Budget 2024 we will ensure that Government policy is again carefully calibrated so as to provide targeted and temporary supports to those who need it most, while also ensuring that we do not add to inflationary pressures.
