asked the Taoiseach whether any calculations have been made on the probable increase in the consumer price index for the remainder of this year; and how this compares with last year's increase.
Ceisteanna—Questions. Oral Answers. - Consumer Price Index.
5.
No calculations have been made in the Central Statistics Office on the probable increase in the consumer price index for the remainder of this year.
Can the Taoiseach say whether there is any special reason for this in view of the necessity of what other Minister have referred to, the importance of the national wage agreement? Surely it would be important to keep an eye on price increases over the remainder of this year and it would be an essential function to have some forecast available?
That is being done. The Review of 1970 and Outlook for 1971 publication states that the consumer prices are expected to rise more slowly in 1971 than in 1970. The Quarterly Economic Commentary for March, 1971, issued by the Economic and Social Research Institute stated that in the absence of any changes in direct taxation the increase was likely to be about 7 or 7½ per cent over the year. The consumer price index for mid-May, 1971, will be available by about the end of June. So, I can assure the Deputy that with these forecasts and with the factual knowledge we will receive at the end of June we are keeping an eye on the situation.
At the time of the last by-election, I believe, the Taoiseach said that his reason for staying in office was to fight inflation. May I ask the Taoiseach whether he regards himself, on the figures to date, as having succeeded in this fight?
My reason for staying in office is that I have the confidence of the people. One of the purposes of my being in office is to fight inflation and we are doing it successfully.
Further arising——
I am calling Question No. 6.
Is the Taoiseach aware that for the year 1970-71 the consumer price index rose by 10 per cent?
The price increase was about 8 per cent over the course of last year but you cannot just take one month with another.
It was 10 per cent last year—the highest in Europe.
There is no reason why there will not be another increase of 10 per cent in the coming 12 months——
I hope not. I think there will not.
——because of Government policy. It is your policy that is causing it.
Would the Deputy allow Questions to proceed? Question No. 6.