ISME unsurprised by inflation rate increase

IMSE has expressed little surprise at the increase in the rate of inflation.

The Central Statistics Office released figures for August today, showing inflation has risen from July's 4.2 %, to 4.5%

The Irish Small and Medium Enterprises Association (ISME) attributes July's low rate to traditional summer sales on such items as footwear and clothing.

However, it says the considerable underlying inflationary pressures that exist in the economy have manifested in August's increased rate.

ISME Chief Executive Mark Fielding said: "The increase in the inflation rate will further undermine the competitiveness of the SME (small and medium enterprise) sector, whose confidence has already been seriously eroded due to significant increase in production costs."

He added: "Our concern is that higher prices will lead to higher wage demands, culminating in many labour intensive companies having to let people go just to survive."