Fergus O'Dowd (Louth, Fine Gael)
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171. To ask the Minister for Finance his views on concerns raised by a local business (details supplied) in respect of the worsening energy crisis that is debilitating businesses across the country; his plans to support businesses; and if he will make a statement on the matter. [44872/22]

Fergus O'Dowd (Louth, Fine Gael)
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172. To ask the Minister for Finance his views on concerns raised by a local business (details supplied) in respect of the worsening energy crisis that is debilitating businesses across the country; his plans to support businesses; and if he will make a statement on the matter. [44877/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 171 and 172 together.

Consumer price (HICP) inflation has picked up sharply over the course of this year and stood at 9 per cent in August. Almost every advanced economy in the world is in the same position, with inflation rates of 8.3 and 9.1 per cent recorded in the US and euro area respectively in August.

The key cause of the higher level of inflation at present is the sharp rise in wholesale energy, food and other commodity prices since the onset of the war in Ukraine. However, as highlighted in the correspondence, pass-through price effects from higher energy prices are increasingly being felt in other sectors including manufacturing. Indeed, non-energy or ‘core’ inflation has picked up sharply in recent months, to 6 per cent in August, suggesting inflationary pressures are increasingly broad based.

The Government knows the impact rising prices have had on households and businesses across the country and has already taken significant action to help. Some €2.4 billion in cost of living measures has been announced since last October. Looking ahead, the Government will continue to address these challenges head on. Budget 2023will be a ‘Cost of Living Budget’ and will build on the fiscal supports the Government has already provided to cushion the impact of rising prices.

However, we know that resources are limited and while government policy will absorb some of the price shock, we cannot cushion households and businesses from the entire impact. The Government has to balance the response to the increased cost of living in Ireland with the unprecedented level of ongoing global economic uncertainty and macro-economic risk. Furthermore, in responding to the current challenges, it is important that we strike the right balance and ensure that policy doesn’t inadvertently add further inflationary pressures into the system.