High services inflation driven by insurance, banking and legal fees.
At the release of the CSO inflation figures for October, today (10th November)ISME, the Irish Small & Medium Enterprises Association called on the Government to tackle state controlled living costs increases in education and health.
There was a decrease of 0.3% in the annual CPI inflation figure for October, while consumer prices in October, decreased by 0.5% in the month. State controlled areas such as education and health are up 1.6% and 1.3% respectively on October 2015. The State continues to increase the cost of living.
ISME, CEO, Neil McDonnell said, “Todays results show that while inflation is virtually non-existent Government controlled costs account for increases in the cost of living for workers.”
The Association called on the Government to:
Reduce exorbitant insurance, bank interest and legal fees.
Ensure that all state-imposed 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.
“Consumer confidence is at a 20 month low, we must reduce the cost of living for workers in order to get them spending in the local economy.” concluded McDonnell.