Bernard Durkan (Kildare North, Fine Gael)
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Question 255: To ask the Minister for Finance the extent to which the cause or causes of any recent inflationary tendencies have been identified; the corrective action required or taken if any by way of response; and if he will make a statement on the matter. [19540/12]

Michael Noonan (Limerick City, Fine Gael)
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The annual rate of CPI inflation was 2.2 per cent in March. One of the key factors underlying this figure was higher fuel prices, partly reflecting external developments over which we have no control. On an EU harmonised basis, prices in Ireland also rose at an annual rate of 2.2 per cent in March, compared with 2.7 per cent in the euro area as a whole. In terms of the year as a whole, my Department expects HICP inflation to average 1.9 per cent this year, which is lower than current projections for the euro area as a whole.

So our relative price competitiveness continues to improve, and this will enhance our growth prospects.