Dáil Éireann Debate, Tuesday - 23 November 2004
242 Mr. Durkan asked the Minister for Finance the cost increases deemed most likely to militate against consumer confidence in the economy here with particular reference to the need to maintain Ireland as an attractive investment location; and if he will make a statement on the matter. [30281/04]
Amharc ar fhreagraI am conscious of the need to maintain and improve Ireland's competitive position to ensure the continuation of strong output and employment growth in the future. Ireland is a highly open economy, and we must remain competitive to continue to attract investment and to allow continued export growth. On an EU harmonised basis, Irish inflation fell below the euro area average earlier this year and remains close to, but just slightly above the euro area average. The Government's anti-inflation strategy has contributed to this and the Government will remain focused, through the partnership process, on securing low inflation and responsible wage growth in the economy, thereby helping to secure Ireland's competitiveness and future prosperity.
For the year as a whole, my Department, in its annual economic review and outlook published in August, projected that inflation as measured by annual changes in the consumer price index would average 2.2% this year. This would be the lowest rate of increase since 1999. I note that the IIB-ESRI consumer sentiment index has improved steadily over the course of this year and is now at its highest level since mid-2001.
