Soaring inflation makes Ireland most expensive country in Eurozone – Bruton

Irish prices rising faster than other euro countries

Today’s inflation figures confirm that not only is Ireland the most expensive country in the Eurozone, but prices here are rising faster than in the rest of the zone, Fine Gael Deputy Leader & Finance Spokesman Richard Bruton TD said today (Thursday).

“As inflation hits its highest level in four years, driven by rising mortgage interest rates, there are dangerous signs of fragility in our economy. The economy has become over-reliant on construction and consumer spending, much of it funded by very rapid increases in borrowing. Meanwhile we have been steadily losing market share in or export markets.

“With the cost of borrowing up by 33% over the last 12 months, some families are feeling the strain. For recent house buyers, as much as a third of their income can go on mortgages. Many independent experts are saying the houses they are buying are over priced. Despite this house prices are up a further 8% on the first six months of the year. This leaves families exposed, but the Government seems indifferent.

“Clearly this is not the time for the Government to be stoking up spending in the economy, but that is exactly what it is doing. None of this bodes well for the economy at a time of greater international economic uncertainty.

“Compared to the rest of the Eurozone, Irish inflation is now well ahead of price rises in the rest of the Eurozone, even though these countries are coming under the same pressure of rising interest rates and rising fuel prices. In contrast, on year ago Irish inflation was running below the Eurozone average. There is a huge gulf opening up in Irish prices for Communications, Health and Utilities, where Irish inflation is far ahead. This is in sharp contrast to Drink, Clothing and Furniture on imported goods.”

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