Inflationary pressures

A chara, – As Budget 2023 is only a matter of weeks away, as is the sense of anxiety and anticipation as winter approaches, it is vital that the budget not only provides targeted supports but also addresses the macro-economic dynamic, most notably the inflationary pressures that affect each and every one of us in our daily lives.

According to Eurostat, the EU’s statistical agency, inflation across the euro area rose to 8.6 per cent in June but its estimate for Ireland stood at 9.6 per cent. And we all know things have become progressively more expensive since then. The biggest contributor to this is the cost of energy which has increased exponentially and driven up the cost-base for all those providing goods and services, who in turn have to pass at least some of this cost on to the consumer. It therefore stands to reason that the cost of energy needs to be tackled in order to drag down the rate of inflation. Measures such as price caps, cuts to VAT and excise and windfall taxes on the growing profits of energy suppliers need to part of Budget 2023.

Failure to address radically the cost of energy as we approach winter will not only stifle economic growth and precipitate a deep recession but will push ordinary workers and families further into poverty.

The issue is urgent.