Statement on inflation
13 Sep 2007
While Congress welcomes the slight drop in inflation, we would point out that it has averaged almost 5 per cent for the year so far. Most economists had forecast a rise in the CPI of just over 2 per cent for 2007, in mid 2006. The average rise in the first 8 months of 4.99 per cent is more than double the forecasts made by economists, Congress' Economic Advisor, Paul Sweeney said.
The forecasts being made for inflation in 2008 are in the range of 3 to 4 per cent. In the light of the outturn to date, Congress will find it very difficult to accept the validity of these forecasts, Sweeney said. When we begin negotiations for a new National Agreement towards the end of this year, unless inflation is substantially down, we will seek to have a cushion which will allow workers to enjoy a rise in incomes above inflation and also to share in the fruits of economic growth.
Contact Paul Sweeney, 8897777 or 086 2052572