SFA Comment on July Inflation Figures

Thursday, 8 August 2013


- SFA calls on government to address business costs


The Acting Director of the Small Firms Association, Avine McNally, said that the 0.7% inflation rate for July is a concern. “In general we are seeing inflation becoming quite subdued. A concern for many small firms is the external factors such as energy costs which may cause a risk to the inflation rate this year.”

McNally called on the Government to urgently restore business costs, particularly in the sectors where it has direct control over pricing. “The Government needs to take firm action to reduce the costs it imposes on the economy, so that it is not having knock-on negative impacts on small business. By taking this action Government will be contributing directly to the viability of small businesses”.

McNally added that any price decreases that Ireland has experienced are largely a response to the Irish and international recession i.e. reduction in interest rates; reduced demand, rather than a specific response to any structural or policy changes made within the Irish economy. “Structural and policy changes are necessary to ensure prices remain low and to assist small firms competitiveness.”

Ends.

For further information contact: Avine McNally, Acting Director, Small Firms Association. Telephone: 01 605 1633 or 087 645 0205.
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