Bernard Durkan (Kildare North, Fine Gael)
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Question 164: To ask the Minister for Finance the extent if any to which the reason or reasons for any inflation throughout the European Union; the way it is intended to address to such issues in the future; and if he will make a statement on the matter. [34821/11]

Bernard Durkan (Kildare North, Fine Gael)
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Question 165: To ask the Minister for Finance the extent to which serious deflation is affecting particular countries throughout the European Union; the strategy in place or likely to be put in place to address such issues; and if he will make a statement on the matter. [34822/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 164 and 165 together.

The Deputy will be aware that the European Commission last week published its Autumn economic forecasts. In this, it states that the main driving force behind the acceleration of HICP inflation in the EU in the first half of the year was the pass through of high energy and food prices to headline inflation.

Looking to the future, the Commission expects that the projected easing of commodity prices and the slowdown in economic activity in the EU should keep inflationary pressures contained over the next few years.

The Autumn forecasts show that inflation in the EU will average 3.0 per cent in 2011 before moderating to 2.0 per cent and 1.8 per cent in 2012 and 2013 respectively.

With regard to deflation, the Commission forecast's show that no Member State is expected to experience deflation in 2011 nor is any Member State projected to enter into deflationary territory over the forecast horizon.