Congress Says Inflation Now Eroding Living Standards
13 Mar 2008
Congress today expressed serious concern at the latest rise in inflation and said the continued upward trajectory in the rate was beginning to "erode peoples' living standards."
New figures from the Central Statistics' Office showed inflation had increased by 1.2 percent, in the month, and now stands at 4.8 percent. The rate for January was 4.3 percent.
Congress Economic Advisor, Paul Sweeney said it was now certain that the overall rate would keep growing for the foreseeable future: "There is no doubt but that this upward trajectory is set to continue and that it is eroding peoples' living standards. Look at the items worst affected, essential items that people cannot do without: food and fuel.
"The price of flour has soared by a huge 46 percent, while bread has risen by 20 percent. Milk has gone up almost 30 percent, while eggs and butter have also seen substantial price increases.
"Food and fuel products account for 20 percent of average consumer spending. And these price rises impact disproportionately on those on lower incomes. People simply do not have the capacity to absorb these continued and continuing increases, month after month. There are only so many cutbacks a family budget can take."
Mr Sweeney said slight falls in the inflation rate, in December and January, had led to some extraordinary outbursts of irrational exuberance, as employers and 'stockbroker economists' queued all happily chorused that inflation had now peaked.
"In their enthusiasm, they all seemed to ignore the serious inflationary pressures that exist at home and in the global economy, as our research showed. An element of complacency seems to have entered the calculations of - inflation has been on a consistent upward trajectory for a number of years now."
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