Lack of competition ‘driving inflation’

A LACK of competition in key sectors of the Irish economy is keeping Irish inflation at twice the European average, two leading economists declared yesterday.

The annual rate of inflation fell to 4.3% in April from 4.9% in March but remains the highest in Europe, the latest Consumer Price Index figures from the Central Statistics Office reveal.

Figures indicate that increases in indirect taxes and public sector charges account for 1.8 percentage points of the current 4.3% figure. The CPI excluding tobacco is up just 3.9% in the year.