High price levels ‘will hinder recovery’

IRISH prices are 12% higher than the euro area average and will prevent the country benefiting from any pick-up in the global economy, the Central Bank warned yesterday.

The Central Bank's autumn bulletin warns that competitiveness is the most important actor that could prevent the country from benefiting from an international upturn. "Ireland must ensure that it is in a position to benefit from the international upturn when it comes," the bank said.

"This places particular emphasis on ensuring competitiveness, a task made more difficult by the recent appreciation of the euro."