Economy is slowing down says Govt
New figures released today have shown that inflation for the month of September fell by three percent to 4.3%.
The reduction brings inflation down to its lowest level in 20 months. While the Government acknowledges that the slowdown in the economy is the reason for this drop, they refute that there is no recession.
The Minister of State for the Department of the Taoiseach, Seamus Brennan said there is an international slowdown but this will last for six to twelve months and then the economy will be "back to full speed".
Mr Brennan added that the reason for the slowdown was due to increased competition in the economy and this pulls prices down. He added the reduction in the mortgage rates also reflect this.
He also added that Ireland has the lowest unemployment rate in the EU at under 4%.
Meanwhile, the Labour Party has accused the Government of sending out confusing and contradictory messages about the economy.
The party's finance spokesman, Derek McDowell says the consequences of this message could be disastrous and it will be the less well-of and those expecting child benefits that will suffer.
Mr McDowell added that the message will damage consumer confidence and this will damage the economy.
However, Mr Brennan refuted this claim saying that individuals may use different words but the government's message is the same. He reaffirmed that there is not a recession and the country's economy is growing at a rate of 3-4%.
