SFA Comment on CPI Figures

Average Inflation Rate in 2014 of 0.2%

Businesses struggle to achieve price increases

No justification for broad pay increases


The Consumer Price Index (CPI) figures released today by the CSO show a decline of 0.3% in overall prices in December and an annual average rate of inflation in 2014 of just 0.2%. The Director of the Small Firms Association, Patricia Callan commented: “despite the significant increase in business activity levels this year, many businesses are struggling to achieve price increases in the marketplace. Price competition in all sectors remains strong and customers have benefited from this competition. The most significant increase in prices was recorded in the Education sector, and this shows the need for the Government sector to keep control of its cost base. Given that there was just a 0.2% increase in the cost of living overall in 2014, there is no justification whatsoever for broad-sweeping pay claims this year. However, small companies will continue to reward employees who demonstrate productivity improvements at individual firm level.

Ends.

For further information, please contact Patricia Callan, SFA Director, at Tel: 01 605 1602 or 087-6999345, e-mail: patricia.callan@sfa.ie, Twitter: @SFA_IRL
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