State’s attempt to claim credit for inflation rate drop dismissed

GOVERNMENT claims that the sharp fall in the cost of living is because of its policies were dismissed yesterday by consumer groups, business associations and opposition parties.

Lower oil prices globally have been identified by economists as the main reason for the fall in the May inflation rate, from 4.3% to 3.7%, directly contradicting the Government’s belief it is a “clear vindication” of its policies.

Despite the fall, the rate remains nearly twice the EU average of 1.9%.