There has been much complacency in comments made on the rate of inflation. While it has fallen significantly in the past months, the Government and commentators continue to ignore the fact that it is still more than twice the EU average. This also plays a significant role in the perceived lack of competitiveness. The problem of the increased value of the euro against the dollar and sterling is largely outside of the control of the Government, but it goes some way towards explaining the difficulties in the sector.