Dan Boyle (Cork South Central, Green Party)
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Question 93: To ask the Minister for Finance the action he intends to take to address the negative impact of the significant increase in the rate of inflation for the fourth month running; if it is not timely for more State intervention in view of the fact that increases have been driven largely by higher energy costs leading to price increases in sectors that are largely controlled by the State; and his views on whether inflation will average 2.7% in 2006. [19204/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Inflation, as measured by annual changes in the Consumer Price Index (CPI), was 3.8 per cent in April. A large proportion of the rise in the annual inflation rate is due to external factors such as higher oil prices and recent rises in interest rates by the ECB.

Higher energy costs largely reflect the trend in international energy prices. The Government has no control over international energy price developments.

On Budget day, my Department forecast that CPI inflation will average 2.7 per cent in 2006. This forecast was calculated using the usual technical assumption of unchanged interest rates. The Department will be publishing new forecasts in the Autumn.