Central Bank warns inflation still too high

The Central Bank's annual report has shown that the rate of inflation in this country is running at 4.5%, which is still too high, according to its governor,

Maurice O'Connell.

Mr O'Connell said the rate is still beyond the norm for a state in the euro zone and has warned against complacency over the issue.

Growth for this year is predicted to be 6% of GNP, which the Bank warns is not sustainable in the medium term.

This also represents a drop from previous forecasts, which is attributed to the downturn in the US economy and the fallout from foot-and-mouth.