Government criticised over 3.9% inflation level

Opposition parties have criticised the Government over figures released today by the Central Statistics Office (CSO) that show inflation continuing to outstrip the euro zone average.

The CSO said the consumer price index rose 3.9 per cent year-on-year in June, unchanged from May, with prices up 0.3 per cent month-on-month. Euro zone inflation stood at 2.5 per cent in June.

Fine Gael Finance Spokesman Richard Bruton warned of the danger that inflation would "price Ireland out of business." He said: "Ireland remains the most expensive country in Europe. The Irish inflation rate is now significantly higher than the EU rate of 2.9 per cent, putting Ireland at a serious competitive disadvantage."

Labour Party spokesperson on consumer affairs Kathleen Lynch said the figures were "further bad news for hardworking families."

The yearly rise in the EU Harmonised Index of Consumer Prices eased to 2.9 per cent in June from 3 per cent in May. This kept inflation at the same high level as last summer and unchanged from the annual figure recorded in May.

The cost of housing, water, electricity, and fuels increased by 0.5 per cent while clothing and footwear decreased 1.1 per cent. The annual rate of inflation for goods was 2.1 per cent in June while the corresponding rate for services was 5.4 per cent.

The monthly Consumer Price Index report showed the most notable changes in the year were increases in housing, water, electricity, gas and other fuels - which rose by 13.8 per cent.

Transport costs also rose sharply over the year, increasing by 5.3 per cent, while education - up 4.7 per cent - and health - up 4.5 per cent - also added to the high inflation rate.