A rise in the annual inflation rate by 0.3 per cent in March has this evening been hailed as a 'black mark' against the Government by the Opposition parties.
The annual rate of inflation reached 5.1 per cent in March, an increase of 0.3 per cent on February's figure. The rise in last month's consumer price index (CPI) compares to an increase of 0.4 per cent during March last year.
Labour Finance spokesperson Joan Burton said the figures for March, released today, also showed a loss of competitiveness in the economy and were further evidence of Government mis-management.
Pat Mc Ardle, Ulster Bank chief economist said "recent CPI forecasts have been erratic. Before Christmas, the Economic and Social Research Institute (ESRI) said the CPI would rise to nearly 6 per cent but it did not".
"Similarly, a month ago the common view was that inflation had peaked at 5.2 per cent and would decline progressively over the remainder of the year. We were something of a lone voice in saying that it would change tack and once again exceed 5 per cent in March and April.
"The first part of this has now materialised and we expect the April rate to be 5.2 per cent, equal to the previous high. The reason for the latest spike is simple - it reflects higher petrol and energy prices," he said.
Ms Burton said major components of the inflation increase were rising energy and transport costs, but also higher mortgage repayments and "many Government imposed charges".
"The Fianna Fail - PD Government record on inflation is dismal and getting worse," said Ms Burton. "Today's figures will undoubtedly create further difficulties for Social Partnership as trade union members watch the benefit of pay rises being wiped out by inflation."
According to figures released today by the Central Statistics Office, the most significant price increases were in clothing and footwear, which rose by 2.1 per cent in March as a result of price recovery following the traditional January sales slump.
Mortgage interest rates increased by 0.6 per cent on the February figure - an increase of 2.7 per cent since the same time last year.
Further price rises were seen in transport, with a 1.6 per cent rise in petrol and diesel prices and air fares during the month. The average price of housing, water, electricity and gas rose by 1 per cent during March, while the cost of dining out and hotel accommodation went up by the same percentage.
Tobacco prices and energy costs were up in the month and up on figures for the same period last year.