Tax hikes on cards as inflation rate falls

THE dramatic fall in the inflation rate from 2.9% to 2.3% opens the way for Finance Minister Charlie McCreevy to increase consumer taxes and charges in his December budget, leading economist Austin Hughes warned last night.

And the business sector asked Mr McCreevy not to put any upward pressure on inflation by increasing taxes and charges.

IIB Bank chief economist Austin Hughes warned the most likely immediate significance of the slowdown in inflation will be significant increases in indirect taxes and charges for public services in Mr McCreevy’s budget.