The Sinn Féin says now is the time for emergency measures to tackle rising inflation.
Pearse Doherty TD Sinn Féin's Spokesperson on Finance WE ARE IN the grip of a cost of living crisis. Every household is feeling the squeeze as their incomes are stretched by rising prices. According to the latest Economic Pulse report by Bank of Ireland, one-third of households are now ‘just making ends meet’.
For months, the Government has resisted and dismissed consistent demands for a package of measures to support households. Instead, they have insisted that workers and families should wait. This approach is wrong and incoherent. We need to understand what is causing inflation and what isn’t. Advertisement
We know that the illegal invasion of Ukraine has led to a sharp increase in energy and food prices. But rising prices have been with us since last year – when inflation reached 5.7 per cent in December. This was due primarily to energy price shocks and supply chain bottlenecks as the world emerged from the pandemic. None of this has been caused by the purchasing power of lower and middle-income households. Today, increases in the price of energy and food make up almost half of inflation.
This underlines the need for targeted measures that support those suffering most under the strain of this cost of living crisis – action that has not been taken. Many households have been struggling for the past year. Others, faced with low pay and incomes, have been struggling for much longer. As these prices have risen, the tax take the State brings in through VAT has also increased. On Budget day last year, the Government was expected to spend €8.3 billion more than it would bring in through revenue. The ESRI now expects the Government to run a surplus of nearly €2 billion this year – taking in more in revenue than it will spend.
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