Prices falling in real economy
Friday the 10th of July 2009
Falling prices and costs published by the CSO are good news for consumers and business as it creates hope of the start of a recovery from recession.
However, some in the private sector, insurance +19%, childcare +6%, and largely in the state sector, transport +11%, education +4.5%, hospital charges +9% are still rising prices and failing in their duty to reduce costs in line with the real economy. Electricity prices in Ireland are now the highest in Europe and damaging the economy and Foreign Direct Investment.
Dermott Jewell of the Consumers Association of Ireland is reported as saying “unjustified price hikes will put Ireland on the road to ruination.”
Tom Coffey, CEO DCBA, said “The state sector are not living in the real economy and are not making the kind of reductions in prices to consumers that is required in the interests of our country. It appears that true patriotism at this time is lacking amongst the Irish political class, state sector companies and an unproductive legal sector in failing to make the decisions to control their own costs in the interests of our country.”
“The real economy (clothing -12%, food -3%, etc.) has reduced prices and have been very flexible quickly in reducing costs and prices which shows that Ireland has great ability to adjust to the new economic condition. It is disappointing that some sectors are laggards and free loading.”