Alarm bells for economy, warns Bruton

Today's rise of 0.5% in inflation figures continues to sound alarm bells for the Government's economic management, Fine Gael Finance spokesman Richard Bruton warned today.

Mr Bruton said the news confirms price inflation in Ireland is running at more than twice that of our main markets.

"Spending is racing way ahead of revenue, presenting an additional source of concern about Ireland's long-term competitiveness.

"Unemployment has been rising relentlessly for the past nine months. This inflation hike comes at a time of difficult trading conditions in many key business sectors. Manufacturing employment has already started to decline while tourism is still struggling to recover.

"The Central Bank has already expressed its concern that inflation, which has more than trebled since 1999, is damaging Ireland's export capacity.

"Insurance costs are soaring and there is now a real prospect of a ½ point rise in the cost of mortgages.

"The Government has clearly taken its eye off the ball. Many of the challenges to our long-term competitive position arise from within the Governments' sphere of responsibility. The Government must heed the warning signs on the employment and inflation fronts."