Inflation hits 5.2

Inflation is one of those things that it is hard to quantify in everyday terms. But it is clear that it is becoming the biggest treat to the Celtic Tiger. And what are the parties doing about it. Where are all the policies about curbing inflation. The main economic policies we hear from the parties are income tax cuts which will do little to curb the rise in inflation. Indeed they will probably be eaten up by inflation by the time they come into being. While the rates of indirect taxes continue to be among the highest in Europe and contribute to the high cost of living. These taxes are regressive in nature. Disproportionably effecting the poor.

Yet Labour the party that claims to be all for social justice. Wants to give the rich the tax breaks by lowering the lower rate of tax to 18%. Remember many of the poorest in this country pay no tax but do buy goods and services.

Also if you look across many of the state industries you see that prices are rising there as well. Electricity price are among the highest in Europe and the ESB is still allowed it dominating market position. Where is the increase in competition? Where is the liberalisation of the market. How long does it take to separate ESB from the distribution network?

Transports costs have risen. The government spent months arguing over what to do about Dublin bus and then did feck all. While fares increased unabated. And the position of the main player in the market remained dominate. Prices can be lowered. Take Bus Eireann where ever they have been challenged they have lowered prices. Be it by Kavanagh’s on the Dublin Limerick route or citilink on the Galway-Dublin route. Competition has brought down prices. Compare that to the Cork-Limerick-Galway route. A route which is in my experience always full and the prices are far more expense.

Health care with the furore of risk equalisation that is hurting the ability of companies to compete and lower prices for people. I understand the reason for risk equalisation and support the principle. But surely it would be better just to make sure people can transfer their health accounts easier, even if they were already in receipt of treatment then to drive costs up for Joe Soap.

All this has been talked about for years. All these have been talked about here as well. But none of these questions are being answered. Because Inflation unlike tax cuts is just not sellable.