Mary Coughlan (Donegal South West, Fianna Fail)

I share the Deputy's concern about increases in the price of goods and services. The greater part of these increases reflect global trends over which the Government has little or no control. Approximately 60% of the rise in the consumer price index in the year to May 2008 was attributable to rises in the price of fuels, food and mortgage interest rates.

A comparison of our inflation performance with that of other EU member states underlines the extent to which rising prices here reflect international pressures. Official figures recently released by EUROSTAT show that, measured on a harmonised basis, our inflation rate of 3.7% in the year to May 2008 was identical to the average for the euro area and below the average of 3.9% for the European Union as a whole. Only three member states in the euro area and a further two member states outside the euro area had a lower annual inflation rate over this period.

While Government has little power to influence the main causes of recent increases in the price of food and fuel, I have taken action in areas where we can be in a position to exert some influence. In recent weeks, I have met separately with IBEC and leading members of Retail Ireland and have also written to major individual retailers to express the Government's concern at the apparent reluctance of the retail sector generally to pass on to consumers the benefit of the euro's appreciation against sterling. I was told at these meetings that, while the retail price of goods imported from the United Kingdom had lagged exchange rate movements due to factors such as the forward purchase of goods and currency, there had already been reductions in the price of some goods and further reductions were in the pipeline.

The consumer price index data for the month of May 2008 confirm that there have been modest reductions in the price of a number of goods, such as breakfast cereals and biscuits, known to have a significant UK import content. I intend to continue my engagement with the retail sector in the period ahead with a view to securing a satisfactory outcome for Irish consumers.

I have also met the National Consumer Agency on this issue. As a result of these discussions, the agency is undertaking further price surveys, including the survey published yesterday which compared the prices of a range of branded and own brand goods in the Republic and Northern Ireland. The findings of the survey amply demonstrate the need for a more competitive retail marketplace in the Republic. The publication of more regular and more comprehensive price information by the National Consumer Agency and a willingness by consumers to act on that information have a key role to play in the development of a more competitive marketplace.

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