Inflation - Report points finger at Government

WITH the Government engulfed in renewed controversy over breaking its pre-election promises to rebuild or refurbish crumbling schools, it is facing fresh criticism on the economic front.

According to a damning report, a combination of Coalition policies and the rising price of services are the two main causes of domestic inflation.

According to independent economic consultants, these factors account for almost half the annual inflation rate, which is running at 4.3%. This is double the rate of most other European states.