Consumer Association gives price warning to Government

The Consumer Association has warned that the Government will face higher wage demands if it fails to reign in price hikes affecting consumers.

The warning comes in the wake of an European Commission survey which stated that while Irish people have adapted very well to the new euro currency, there were deep concerns about it's association with increases in prices for consumers.

Chairperson of the Consumer Association Michael Kilcoyne said that the Government must take a tough line to deal with this.

He said: "Increases in the service sector have been running at twice that of inflation.

"There is no evidence to suggest that these guys who have been so greedy last year are going to change their minds this year.

"I would say that it's really up to Government to take a tough line on price increases, because that's going to contribute to inflation and in turn is going to contribute to higher wage demands."

He said Irish business had used the excuse of the introduction of the euro as an excuse to increase prices and that Ireland is now among the most expensive in the euro zone.