Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Finance the extent, if any, to which he and or his Department has observed inflationary or deflationary tendencies throughout the economy with a view to utilising opportunities for economic growth and recovery; and if he will make a statement on the matter. [50799/12]

Michael Noonan (Limerick City, Fine Gael)
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The latest data show that consumer price inflation remains moderate, with prices in October 1.2 per cent higher than in the same month in 2011. As measured by the harmonised index of consumer prices (HICP) – the comparable measure of inflation across the EU – prices in Ireland rose at an annual rate of 2.1 per cent in October. While the pass-through of the increase in global energy prices is driving headline figures, I would point out that core or underlying inflation remains very contained. Following on the fall in consumer prices in 2009 and 2010, the moderate rate of inflation that we have seen over the last two years or so is assisting us in regaining our price competitiveness, and helping the exporting sector to grow. Ireland’s HICP inflation rate has now been below or equal to the euro area average for every month since March 2008.