ISME: Inflation scourge continues

The Irish Small and Medium Enterprise Association (ISME) says that the increase in the inflation rate to 2.7% from 2.5% last month confirms that the “scourge” of rising costs has not gone away and continues to pose a significant threat to the economy.

ISME chief executive Mark Fielding said: "While the headline rates on economic growth, employment and exchequer finances are positive, they mask a dangerous underlying threat, namely the cost environment, which if it continues to increase can significantly eradicate recent gains."

Rising oil prices have contributed to the latest increase, but ISME says that it is Government-promoted cost increases that are continually underpinning the inflation rate, particularly in health, education and energy.

According to Fielding it is absolutely essential that the recent warnings by the National Competitiveness Council (NCC) are not ignored and that there are no increases in indirect taxation or stealth taxes in the upcoming budget.