Competitiveness - Inflation is a real threat to our economy

THE Central Bank, predicting a slightly slower growth this year than last, could be seen as sending a shot across the bow in also pointing to the risks posed to the country’s export competitiveness by inflation.

In its quarterly economic bulletin it foresees this as seeming set to remain above the euro area average, although one would hardly need to be told that price levels in this country are already the highest in Europe.

Although forecasting that economic growth at 5.5% will only be fractionally below last year, the bank is relying on strong consumer expenditure driven by people cashing in their SSIA savings accounts.