IBEC warns against inflation 'complacency'

Ireland’s main bosses’ organisation today warned against complacency in the face of the lowest inflation rate since the start of the year.

The Irish Business and Employers’ Confederation (IBEC) forecast that the consumer price index could go below 4% by the end of the year, but urged the Government to set a 2% target.

A spokesman said of the 0.2% fall in the annual price-rise level: “This decline does not mean that we should be complacent about inflation.

“The Government should set a target for inflation of 2% and take concerted action to reach this target.”

The Labour Party claimed the Government had to do more to ease the burden of rising prices, particularly on the less well off.

A spokeswoman said: “It is hardly surprising that inflation is falling in light of poorer economic performance.

“Nonetheless. it will have to fall much further if the Minister’s Budget day predictions are to be met.

“Inflation must continue to fall dramatically in the coming months if consumers and social welfare recipients are not to lose out significantly.

“These figures remain worryingly high particularly in the current economic context”.