Alcoholic beverages and tobacco prices up +3.7% over past year
ISME repeats its call on government to reduce state-influenced costs and local charges as highlighted in the recent National Competitiveness Council report
Print12 May 2014
The latest CSO statistics show prices on average, as measured by the Consumer Price Index (CPI), were 0.3% higher in April compared with April 2013.
The most notable changes in the year were increases in education(+4.5%), alcoholic beverages & tobacco (+3.7%), miscellaneous goods & services (+3.2%) and restaurants & hotels (+2.0%). There were decreases in clothing & footwear (-3.7%), communications(-3.3%), furnishings, household equipment & routine household maintenance (-3.1%) and food & non-alcoholic beverages (-2.1%).
Consumer Prices in April, as measured by the CPI, increased by 0.1% in the month. During April of last year, prices remained unchanged. The most significant monthly price changes were increases in Transport(+0.5%) and Miscellaneous Goods & Services (+0.3%). There were decreases in Furnishings, Household Equipment & Routine Household Maintenance (-0.8%) and Alcoholic Beverages & Tobacco (-0.3%).
Commenting on the release of the CSO inflation figures, the Irish Small and Medium Enterprises Association (ISME)warned that state administered prices continue to be higher than our competitors, resulting in higher costs for business and continue to outpace even the headline HICP inflation in Ireland. The association repeated its call on government to begin a process of reduction of state-influenced costs and local charges as highlighted in the recent National Competitiveness Council report.
Mark Fielding, ISME CEO, said, "The hidden price increases administered by the State continue to affect our international competitiveness, which has also been falsely enhanced by the depreciation in the euro against the currencies of our major trading partners. As a result of this any small gains in competitiveness could be very quickly eroded."
"Business owners are continuously hit with excessive state administered or influenced costs, such as energy, transport, rates and local charges which make it difficult to keep the business profitable. Government should be actively reducing these excessive costs so that our indigenous businesses have a fair chance to prosper and expand".
The association called on the government to enact a number of measures, including ensure that all state imposed business costs are reduced in line with competitor countries. ISME also wants government to address the energy and transport costs and exorbitant fees of the monopolistic legal profession; legislate for upward only rent reviews on legacy leases; and reduce public sector costs by addressing the increments, perks and inefficiencies.
"The low overall inflation figures do not tell the whole story, as they conceal high state-influenced business costs, at a time when economic revival remains tentative. It is imperative that Government address the issue as any negative change in the international inflation and/or currency situation could send the economy back into recession," added Fielding.
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