Economic slowdown 'will help to curb inflation rate'

The Central Bank says lower economic growth this year will help to curb Ireland's high inflation rate.

In its latest quarterly bulleting, the bank says it expects inflation to fall which is expected to drop to around 3% this year and to 2.25% in 2009.

It says unemployment will average 5.9% this year as more jobs are lost in the construction sector.

The bank is also calling for restraint in upcoming national pay talks as it says the economy cannot afford higher wage increases to compensate for rising oil and food prices.