Governments (especially the previous FF/Green one) have stated that the wage cuts, higher taxes, etc. during this era of austerity can be supported by the overall supposed fall in the cost of living.
The propaganda is also spouted by contributors here on P.ie (on behalf of retailers) that if wages are reduced, then the retailing sector and supermarkets will accordingly adjust their prices downwards. By my own experience, I can't say that I've noticed that the cost of my weekly basket of groceries has declined. In fact, more the opposite over the past few years.
Conor Pope in the IT has also noted the same thing, as concluded from a survey of the major Irish supermarkets:
Grocery staples rise in price by 12% in less than two years, survey finds - The Irish Times - Mon, Feb 11, 2013
Up 12% in two years.
So, is price-gouging continuing unabated by Irish retailers, despite the recession?