Coughlan taking credit for price fall ‘is pathetic’

TÁNAISTE Mary Coughlan has been accused of “pathetic self-congratulation” after taking credit for last month’s drop in the cost of living.

The Minister for Enterprise, Trade and Employment said the decrease in the level of inflation was the result of pressure put on retailers by herself, the Government and the state-run National Consumers Agency (NCA).

The cost of living dropped by 0.3% in July according to the Consumer Price Index (CPI) published yesterday, with inflation now at 4.4%.

Opposition parties said the decrease in prices was mainly accounted for by summer sales, with clothes and shoes dropping by almost 11% while furniture and household goods dropped by 1.4%. Food and beverages dropped by 0.4% because of a reduction in the cost of fruit, vegetables and breakfast cereals.

However, compared to last year, there has been a stark rise. Groceries went up by nearly 7% while household bills including electricity, gas and water rose by almost 10%. Education and health care costs rose by more than 6%.

Speaking following a meeting with the NCA yesterday Ms Coughlan said the drop in prices came about following a “clear message” sent out to retailers by the Government.

“I’m glad to see we have a reduction in the CPI figures, that’s good to see, and a lot of that is attributed to some of the pressures that have been given by the NCA and myself and the Government,” she said.

Ms Coughlan said the figures might bring about an agreement on national pay given that unions had been seeking more pay on the basis of inflation levels.

“We are giving a very strong message to retailers that we are constantly going to survey and do comparative analysis and we are going to arm the consumer with a capacity to change,” she said.

The Labour Party said the Tánaiste’s explanation for price drops was pathetic and simplistic.

Enterprise, trade and employment spokesman, Willie Penrose, said: “It’s a bit facile for her to be claiming credit and just shows how bereft the government is of policies and strategies to tackle inflation. What we need now is policies and not self-congratulation.”

Mr Penrose said last month’s drop is “likely to be temporary” as an increase in interest rates by the European Central Bank has yet to filter through.

Fine Gael’s Olivia Mitchell said the Tánaiste’s remarks were “laughable”.

“The drop is much less than what would be expected from a country in recession. What caused the drop is a drop in consumer confidence which caused retailers to drop prices to get customers in the door.”