Annual inflation - High rates are pulling a pinch

WHILE the slight fall in the annual rate of inflation, down to 4.9% in June from 5% in May, is a welcome development, Ireland is still out of kilter with other EU states.

Against a backdrop of rising wage demands, the EU’s harmonised index shows inflation here reached 2.8% in June from 2.7%, the second highest rate in the eurozone and well above the average of 1.9%.

Ominously, production fell in the technology and chemicals sector, down 9.3% on May last year. And tourism was hit by higher air fares, plus rising petrol prices, and increased prices in restaurants and hotels.