Warning of inflationary spiral by business group

THE Irish Business and Employers Confederation has warned that the country is in danger of going into a vicious inflationary spiral that could cause long-term damage to its potential growth rate.

In its pre-Budget submission, IBEC said that a 2% inflation target needed to be achieved through wage moderation, public spending restraint and stronger competition throughout all sectors of the economy.

“The heady days of the boom are over; it is time to bring the public finances under strict control,” IBEC says.