Inflation rate increases - Social Partnership under threat

TAOISEACH Bertie Ahern warned yesterday that “we are entering a period of more challenging economic conditions”.

This was following news that the latest cost of living increase was twice as fast as this time 18 months ago.

This comes in the wake of the eighth rise in interest rates in the same period. That rise will further compound the inflationary pressures. Inflation has gone from 2.5% to 5% since December 2005.