Dáil Éireann Debate, Tuesday - 11 April 2017
153. Deputy Noel Rock asked the Minister for Finance the actions he is recommending to rein in the price inflation that is slowing down the growth of the manufacturing industry; and if he will make a statement on the matter. [18212/17]
Amharc ar fhreagraThe Purchasing Managers Index (PMI) indicates that input costs have increased for manufacturers in Ireland in recent months. However, data published by the CSO show that manufacturing output prices increased by 2.4 per cent in February year-on-year, compared with a decrease of -0.7 per cent in 2016 as a whole. This suggests that manufacturing firms were able to offset some of their cost pressures by raising output prices. These price rises are lower than those for the euro area, where industrial producer prices increased by 4.5 per cent year-on-year in February. This producer price inflation reflects, inter alia, the impact of rising oil prices globally.
Nonetheless, price inflation can put pressure on the competitiveness of these firms which is not desirable over the long term. In this regard, it is important that, at firm level, overall costs do not get out of line with our competitors and that pay moves in line with productivity developments.
It is in this context that my Department continues to monitor Ireland's price and competitiveness developments closely and will continue to maintain competitiveness-oriented policies.
