Ireland is second most expensive EU state for goods and services
ISME, the Irish SME Association today (October 12th) at the release of the latest Consumer Price Index figures called for a reduction in Government-controlled costs. The Association says that in budget week, people should wake up to the fact that a euro pay-rise is worth at least 30% less after tax. But a euro saved in consumer prices means a full euro extra in the wallet.
Prices on average, as measured by the CPI, were 0.2% higher in September compared with September 2016. Government controlled cost continue to rise with Housing (+2.9%), Health (+0.9%), Education (+1.7%) and Transport (+1.0%). While motor insurance fell, home and health insurance costs rose.
The Association called on the Government to:
Reduce exorbitant insurance, bank interest, property and legal fees.
Ensure that all state-influenced business costs are benchmarked internationally.
Ensure that SMEs are not hampered by labour, tax or regulatory increases.
Reduce public sector costs.
Outsource more state sector services to SMEs.
Commenting on today’s figures ISME CEO Neil McDonnell said “Government controlled costs continue to show increases. If we‘re to put real money back into peoples’ pockets we must reduce the costs of housing and living. Latest figures from the Eurostat show Ireland is now the second most expensive country in Europe for consumer goods and services, with prices across a broad cross-section of products estimated to be 125 per cent of the EU average. This must to be addressed”.