Fine Gael's finance spokesman has called for an immediate examination of the causes of increased prices after claiming that retailers have been imposing unjustified mark-ups on goods.
Mr Richard Bruton, who issued an analysis of Central Statistics Office figures on prices yesterday, said the Government should also commit itself to curbing price increases of its own making. These include increased charges for public utilities and medical charges.
He said the Government's authority to tackle Ireland's "rip-off" culture had been seriously compromised by the fact that the Government itself was responsible for almost 60 per cent of inflation.
He called for more rigorous price-display requirements including an obligation to show the equivalent price 12 months ago; a "name-and-shame" campaign on excess prices and a regular price league; a clear code of practice passing on the benefits of currency changes; and the removal of unjustified barriers to entry into all sectors of the economy.
Mr Bruton based his analysis on a comparison between the CSO report on costs in 2001, published this week, and the equivalent report for 1997.
His conclusions come a day after the Economic and Social Research Institute said competition policy and regulatory reform must be stepped up to ensure the economy's competitiveness.
A Bloxham Stockbrokers economist, Mr Alan McQuaid, said yesterday that the figures compiled by Mr Bruton would come as no surprise to consumers, who were well aware of the extent of mark- ups in the services sector.
"I think most consumers would agree that the rate of inflation is too low," he said, calling on Government agencies to pay closer attention to margins and price growth and stand up to "vested interests". Companies would remain free to increase their mark-up at will unless an official body was positioned to control such trends.
Mr McQuaid said the resilience of mark-ups was clearly displayed in last year's Budget, when a previous decrease in the standard VAT rate was reversed because the Minister for Finance, Mr McCreevy, was "convinced" it had not been passed on to consumers.