Bernard Durkan (Kildare North, Fine Gael)
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Question 151: To ask the Minister for Finance the extent to which he has identified hidden inflationary tendencies which seem to activate job relocation to lower cost economies; the action he proposes to address the issue; and if he will make a statement on the matter. [12751/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The director general of the Central Statistics Office, CSO, has sole responsibility for and is independent in deciding the statistical methodology and professional standards to be used in compiling the consumer price index, CPI. Inflation, as measured by the CPI, is forecast to average 2.7% this year. The harmonised index of consumer prices, the EU measure of inflation, is forecast to average 2.0%, broadly in line with rates in our major trading partners.

The level of employment is at an all time high and the unemployment rate is the lowest in the EU. The Deputy's concerns, therefore, are misplaced. None the less, it is vital to retain competitiveness and this Government's policies are aimed at this, via correct fiscal policies, no excise increases and the progressive removal of barriers to competition in the economy which will be reflected, in due course, in prices at retail level.