The Minister for Finance has predicted that the current boom in the Irish economy will continue, despite the highest inflation figures in a decade.
While Mr McCreevy warned that inflation could rise a little more in the short term, he played down fears that it might run out of control and threaten prosperity.
The Minister said that the weakness of the euro and the rise in oil prices were among the factors which had contributed to the present inflation level of 4 per cent.
He indicated that inflation could be expected to increase somewhat over the next few months. It would then peak and begin to come down.
"I would expect the average for the year 2000 to be around 3 per cent", Mr McCreevy said. "The average over the next three years should be in and around 2 per cent."
Interviewed on RTE Radio's This Week programme, the Minister said that inflation was being driven to some extent by external factors such as exchange rates and oil prices.
He said Ireland's new-found prosperity could be maintained. "Certainly, over the next four or five years, if we don't lose the run of ourselves, we're going to enjoy a level of prosperity that we once would only have dreamt about."
However, he warned that continued economic buoyancy depended on pay demands being kept under control.
"Irish inflation in the last 25 years has been determined by outside factors. Some increases are determined domestically within the economy, but the major determinants of inflation are outside the control of the Minister for Finance."
Referring to the Budget, Mr McCreevy said there had been a lot of misinformation about his proposals to individualise the standard-rate tax band and "a lot of hoo-ha about nothing".
He denied that the Budget controversy had damaged his relationship with the Taoiseach. "Since I came into the Cabinet with Bertie Ahern in 1992 we have built up a good personal relationship. My relationship with Bertie Ahern has always been very good. He is someone I would find it very difficult to fall out with," Mr McCreevy said.
He would not be attending the meeting between the Irish League of Credit Unions and the Taoiseach next Thursday. He was aware of the demands of the credit unions, but did not have "anything to learn" from the meeting.
The Minister said he had dealt with the credit unions in 1997. The Finance Bill in 1998 had included DIRT tax proposals, which had caused a huge controversy. "And now the League of Credit Unions are looking for DIRT themselves, something I gave them in 1998. And they are now kicking up a row about it."