ISME 'shocked' at inflation report

The Independent Business Organisation, ISME, has expressed shock at the latest increase in inflation from 4.2% to 4.5% in August, insisting that the Government fulfil its responsibility to reduce inflation to at least the European average.

ISME chief executive, Mark Fielding said today's increase is worrying on a number of fronts. Inflation has increased by 50% since the beginning of the year and the negative gap between Irish and European inflation is growing, with the European average standing at 2.4%.

Mr Fielding sees rising inflation as undermining Irish competitiveness and questioned the role of the "mis-named" Anti-inflation Committee, set up by the Tánaiste in 2003 and manned by IBEC, ICTU and civil servants.

“The performance of the Anti-inflation Committee has been as effective as a chocolate fire screen. This seemingly total lack of Government response to the inexorable rise in inflation is creating a dangerous situation in a pre-election year when governments traditionally spend more, either to fulfil long-fingered promises or to simply buy the electorate,” said Mr Fielding.

Mr Fielding also warned the Government to be "prudent" in the up-coming budget and to put the national interest first.

"The first constructive step would be the replacement of the Anti-inflation Committee," he said.