Domestic demand fuelling inflation, says IBEC
13/07/2006 - 15:10:01Employers group IBEC has expressed concern at the news that the June’s inflation rate has remained unchanged at 3.9%.
“Inflation remains a serious concern for business and consumers and the situation may well get worse before it gets better,” said senior economist Fergal O’Brien.
“While June saw the lowest monthly inflation since January, further price increases are likely in the coming months.”
“Domestic demand pressures are clearly evident from the strong growth in consumer spending and housing activity in the first quarter of the year.
“The worrying increase in Ireland’s cost base impacts negatively on our competitiveness and is reflected in the negative growth contribution from both the manufacturing sector and net exports.”
