Category: Archive

Bumper winter sales ease Ireland’s inflation figures

February 16, 2011

By Staff Reporter

The main factor that pushed down inflation was the traditional winter sales that led to a 13.7 percent drop in the prices of clothing, footwear and furnishings.
The cost of housing, water, electricity and other fuels also fell as a result of lower interest rates.
Those price drops more than offset a higher VAT rate and increases in alcohol and tobacco as a result of Finance Minister Charlie McCreevy’s Budget 2003.
Fine Gael deputy leader and finance spokesman Richard Bruton said the bumper sales had concealed the “damage” the government was doing and the fact that it is now the main engine keeping up inflation.
Despite the January drop, Ireland’s inflation rate continues to be more than double the average 2.2 percent rate across the EU countries and more than triple the 1.7 percent rate in Britain.
“Manufacturing prices at the factory gate are falling sharply,” Bruton said. “Wage increases are moderating. But the government continues to pile on the charges and stealth taxes.
“The prices set by government have risen by an average of 18 percent in the year. The extra cost to a typical family affected by government charges and stealth taxes comes to 1,830 euros. This is an extra burden of 35 euros a week that families have to bear.”

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