Bernard Durkan (Kildare North, Fine Gael)
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129. To ask the Minister for Finance the extent to which his Department monitors the economic impact of energy costs; and if he will make a statement on the matter. [49451/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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My Department monitors energy costs as part of its overall assessment of inflation trends on an ongoing basis.

CSO data indicate that the Energy Products component of the Consumer Price Index (CPI) increased by an average of 3.9 per cent on an annualised basis over the first ten months of 2017. As a result, Energy Products have provided a positive boost to overall inflation this year, contributing on average 0.3 percentage points.

In general, as an energy importer Ireland has benefitted from the steep fall in oil prices since 2014. While futures markets suggest that oil prices will remain subdued, a rapid rebound in oil prices could pose a risk to the economy’s growth prospects. For example, higher oil prices would reduce consumer spending power and lower corporate profitability. However, at present my Department would view the probability of a rapid rise in oil prices as being low.