Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

We monitor inflation at the headline level but also the components of inflation quite closely, as would be expected. Every time a publication is issued by the Central Statistics Office and Eurostat, it is examined by officials in my Department, who report to me, give me a summary of them and their interpretation of the underlying trends. Of course, there is a difference between the harmonised rate, which is the agreed methodology across the European Union, and the consumer price index. The main difference is the inclusion of interest rate changes in the latter. We monitor that very closely. What has been interesting to see has been the reduction in energy prices, especially at wholesale level. We are beginning to see this change pass through to the retail level, but households and businesses can, and should, expect further reductions in retail energy prices in the period ahead. This will come as a welcome relief for many of them. The main risks that we face in our economy are external in nature and these are pretty much broadly balanced. We are anticipating growth this year of approximately 2% in MDD. I will respond further in a moment.

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