Inflation down by 0.1% in May

Ireland’s inflation rate fell by 0.1% in May, according to figures released today by the Central Statistics Office.

The annual rate fell from 4.8% to 4.7% during the month, despite a 0.5% rise in prices.

The figures mean that Ireland still has the highest inflation rate in the 12-nation euro-zone, something Fine Gael has blamed on the Government’s failure to manage the economy.

Meanwhile, the employers’ body IBEC has warned of future job losses if the Government fails to tackle the growing inflation problem.

IBEC urged the incoming administration to reduce public spending in an effort to reverse the trends that have allowed Ireland’s inflation rate to spiral out of control.

However, spokesman Brian Geoghegan said funding for infrastructure projects should not be touched. "Obviously not everything can be done, given the reality now in the public finances," he said, "but capital spending should move ahead. That will increase the capacity of the economy and help ultimately to deal with some of the congestion problems which themselves are creating inflation."