Richard Bruton’s claims on Thursday “that inflation is rising faster here than in all other EU countries as a direct result of Government policies” are nonsense.
The facts show that Ireland’s inflation rate, harmonized with our European partners, actually fell in October from 2.8 per cent to 2.7 per cent. The European average is 2.5 per cent and only 4 of the 25 EU states have an inflation rate of less than 2 per cent. To say that our rate is accelerating away just doesn’t stand up
It is likely now that inflation for the year will come in around 2.5 per cent, close to the EU average, and as predicted in the last budget.
Fine Gael might be taken more seriously on inflation if they hadn’t taken such a grudging approach to end of the Groceries Order this week. There is no doubt that the abolition of the order will have a significant impact in helping to keep the inflation rate down next year.
Fine Gael consistently attempt to talk the economy down. They tell us about price increases but never point out that, since 1997, the increase in average earnings has far outpaced the inflation rate. And that’s before the tax cuts we introduced are taken into account.
Ireland continues to be a star economic performer at European level. We have the lowest unemployment rate in the Union with one in four jobs created since 1997. Our economy will also grow at twice the European average this year.
No doubt Richard and his party colleagues also took the opportunity over the weekend to reflect on the halving of unemployment, the halving of the national debt, the doubling of social welfare, the introduction of the minimum wage, the return of €5 billion to Irish people through tax reductions, the cutting of the basic rate of income tax from 27% to 20%, entry point to tax system rising to €274 per week from €98 and the increase of over 50% in national income that has happened since they left office in 1997. Being Fine Gael they probably asked themselves where it all went wrong!



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