Workers 'expecting too much' - IBEC

The employers body, IBEC, has warned that wage increases are seriously impacting on inflation rates and said that there is an urgent need for reduced expectation from employees.

Their comments come as the Irish rate of inflation hits twice the EU average.

IBEC's chief economist, David Croughan, said it is just not possible to have tax cuts and wage increases without fuelling inflation.

"It's the wage increases that embed inflation into the economy and then in turn, affect costs further down the line, which encourage prices to rise," he said.

He added: "So it becomes a vicious circle of wages chasing prices."