Pay deals 'must not push inflation higher'

EMPLOYERS group IBEC says wage agreements should not exceed those in other eurozone countries in order to curb the rate of inflation.

It said that Ireland must set an inflation target of 2% and that it should be achieved at any possible means, including setting wage increases at this rate.

In a 10-point action plan to ease inflation presented to the Government yesterday, IBEC director of economic affairs Brian Geoghan said that implementation of the benchmarking agreement should be held back until the social partners back measures to bring down inflation.