Rising inflation leaves Cowen credibility in tatters- Bruton

[Insider2007]

“The latest annual inflation rate of 5.1% in April marks a new low for this Government’s record on the cost of living,” Fine Gael Deputy Leader & Finance Spokesman Richard Bruton TD said today (Thursday).

“Ireland is already the most expensive country in the eurozone and is getting more expensive all the time. Inflation here is the highest of all euro countries, and more than double the average rate for leading industrialised countries.

“By dismissing each month’s inflation hikes as one-off incidents, and by wilfully sticking to his increasingly absurd inflation forecast of 4.1% for 2007 as a whole, Minister Cowen’s credibility on economic management is looking increasingly tattered.

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[Fr. Hank Tree]

Spot on Richard. Rising costs are down to FF's sneaky stealth-taxes which we're paying for FF's 2002 election. They're also making our economy more and more uncompetitive. FF and Biffo are destroying Ireland's manufacturing industry. Total incompetence.

[rover]

economic competence my ass

inflation is now 4% higher than it was in 1997

[eurocrat]

Again, do we need press realeases and this site? A link and short summary will suffice.

Almost half of the inflation increased over the past year has been due to ECB interest rates hikes. What can Brain Cowen do about that? Is the Minister for Finance directly responsible for the CPI going up and down? Can he be blamed for the decisions made by OPEC?

On a related note, isn't it about time we took mortage repayments out of the basket of goods? Interest rates hikes are supposed to reduce inflation pressure by removing money from the economy (over simplified). However in Ireland the hike send the CPI upwards thus sending inflation figures higher. That results in people seeking larger pay increase - which has the effect of further fueling inflation. It means that anti-inflationary measures do the exact opposite.

Simulary the reverse is true when rate begin to go to down.

[thegeneral]

Frankly a statement like that which the FG hacks will endorse like hungry seals undermines Bruton's credibility. I heard before the man claims to have once been an economist? I presume then he is aware of the concept of imported inflation, something which is studied during the leaving cert, and which is of particular relevance to an island nation such as Ireland for whom the vast majority of inflation is imported due to external factors particulcarly fuel and transport costs and also interest rate increases.

[KingKane]

insider, can you link to the release and just have the headline aspect in the open post of the thread. Cutting and pasting releases is not part of the p.ie ethos and is to be avoided at all costs.

[CJH]

economic competence my ass

inflation is now 4% higher than it was in 1997

That's brilliant. Well done.

Now tell us what the unemployment rate was in 97 compared to now. Or the basic pension. Or the average wage. Or......whatever

[KingKane]

economic competence my ass

inflation is now 4% higher than it was in 1997

That's brilliant. Well done.

Now tell us what the unemployment rate was in 97 compared to now. Or the basic pension. Or the average wage. Or......whatever

Or the price of a house or a pint, for that matter?

[CJH]

economic competence my ass

inflation is now 4% higher than it was in 1997

That's brilliant. Well done.

Now tell us what the unemployment rate was in 97 compared to now. Or the basic pension. Or the average wage. Or......whatever

Or the price of a house or a pint, for that matter?

Exactly. Comparing these things in isolation is meaningless

[FakeViking]

Economy improving: it's Bertie the misLeader's great management of the economy over the past 10 years.

Economy disimproving: inherited from the Rainbow / caused by international downturn / short term reduction in growth / etc / etc

It must be such a simple existence being a FF hack!