Michael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Health the reason healthcare inflation here is the second highest in Europe; and if he will make a statement on the matter. [57078/12]

James Reilly (Dublin North, Fine Gael)
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Ireland recorded the third lowest rate of inflation in the Health Category in the EU 15. Greece and Portugal were the countries which were lower. The type of prices included in the health category include medical products, appliances and equipment, hospital charges and out patient services supplied by doctors, dentists, opticians, physiotherapists and practitioners of alternative and complimentary medicine.

The Harmonised Index of Consumer Prices (HICP) for November 2012 indicates that Ireland has the second highest inflation rate in health care cost in EU 15 except for Netherlands over the last 6 years. However, figures for the UK are not available, but it is normally slightly above Ireland which would indicate that Ireland has the third highest rate.

The HICP is based on the Consumer Price Index (CPI) survey, which is designed to measure the change in the average level of prices (inclusive of all indirect taxes) paid for consumer goods and services by all private households in the country and by foreign tourists holidaying in Ireland. Therefore it does not reflect price changes in the cost to the Health Service Executive of providing treatment. As the Deputy will be aware, very significant reductions in the cost of human resources, medications and in fees paid to professionals have been achieved in Ireland over the last few years - however, these are not comprehended within the HICP.