Motorists braced for 10c toll hike

Motorists are set to be hit with a 10c price increase for toll road usage from the beginning of next year, in line with rising inflation.

Although unconfirmed, a National Roads Authority (NRA) spokesperson said the increase was “more than likely”, as tolls were governed by movement in the monthly consumer price index, published by the CSO.

It would mean that the average price for toll road usage would go from €1.80 to €1.90 as of the beginning of January.

Latest monthly inflation figures from the CSO, published yesterday, showed a 0.1% drop in consumer prices in September, compared to the previous month. However, when measured on a year-on-year basis, prices were up by 1.6% — making September the 26th consecutive month where annualised price increases have been evident.

Increased education, transport, and drink prices pushed annual costs up in September although transport prices fell on a monthly basis.

Recently announced mortgage cost increases — along with rises in energy prices and public transport fares — are likely to maintain pressure on consumer prices in the coming months.

“This pressure, allied to the further tax increases planned for December’s budget, will act as a headwind to consumer spending growth for some time to come,” said Philip O’Sullivan, the chief economist at NCB Stockbrokers.

Conall MacCoille, chief economist with Davy Stockbrokers, said: “Although retail sales stabilised in the third quarter, higher energy prices threaten consumer spending in the final quarter of 2012.”

Alan McQuaid at Merrion Stockbrokers, meanwhile, suggested yesterday that 2012’s average inflation rate was likely to come in at 1.9%, down from 2.6% in 2011 — following two deflationary years in 2009 and 2010 — and could fall to 1.6% next year.

Juliet Tennent, Goodbody Stockbrokers’ economist, said: “With consumers continuing to face government austerity, tight credit conditions and a weak labour market it is unlikely that domestic pricing pressures will emerge.”

Small firms lobby group Isme used yesterday’s inflation figures to urge the Government to tackle high business costs, saying certain rising prices were “driving cost for business through the roof and negatively affecting our competitiveness”.