Bernard Durkan (Kildare North, Fine Gael)
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Question 155: To ask the Minister for Finance the extent to which he has monitored the various costs affecting economic recovery; the degree to which he has identified the major contributory factors that need to be addressed in this context; and if he will make a statement on the matter. [11877/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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My officials continuously monitor and analyse how cost developments are impacting on our economic performance and I am briefed accordingly. Consumer prices are falling in Ireland while they are rising in many of our trading partners. In January, for instance, harmonised consumer prices fell at an annual rate of 2.4 per cent in Ireland compared with an increase of 1.0 per cent in the euro area. In addition, after adjusting for productivity developments, wages in Ireland are falling compared with increases in most other countries. These developments confirm that the necessary adjustments in competitiveness are taking place, which will help position the economy to take advantage of the emerging global recovery.