{"id":33764,"date":"2022-06-05T06:11:05","date_gmt":"2022-06-05T06:11:05","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/06\/05\/spike-in-inflation-is-not-temporary-warns-varadkar\/"},"modified":"2022-06-05T06:11:05","modified_gmt":"2022-06-05T06:11:05","slug":"spike-in-inflation-is-not-temporary-warns-varadkar","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/06\/05\/spike-in-inflation-is-not-temporary-warns-varadkar\/","title":{"rendered":"Spike in inflation is ‘not temporary’, warns Varadkar"},"content":{"rendered":"
\n

High inflation rates in Ireland could last more than two years, the Tannaists warned.<\/p>\n

Leo Varadkar also said that for the first time in many years, living standards could fall due to the cost of living crisis.<\/p>\n

He delivered a speech on the future of Irish industrial policy at the Institute of International and European Affairs.<\/p>\n

Earlier, a study by the Institute for Economic and Social Research (ESRI) said that inflation could hit 6.7 per cent this year, a level not seen in Ireland for decades.<\/p>\n

\n<\/figure>\n

Mr Varadkar said: \u201cFor the first time in many years, the real standard of living this year may fall if prices rise faster than disposable income.<\/p>\n

“That’s certainly true for many households.<\/p>\n

“This is something that the government is very aware of and concerned about. For this reason, we have already provided more than a billion euros in relief to help the pain.<\/p>\n

“There are many reasons for this spike in inflation and cost of living.<\/p>\n

\u201cIt comes after a long period of very low inflation and interest rates that was sure to come to an end, but unfortunately it ended with a bang.<\/p>\n

\n

Inflationary pressures are likely to intensify as a result of Ukraine’s invasion. Check out a presentation of our latest comment here: @mcquinn_kieran<\/a> @otoolecm<\/a><\/p>\n

– ESRI Dublin (@ESRIDublin) March 23, 2022<\/a><\/p>\n<\/blockquote>\n

“We have not seen this phenomenon since the early 1980s. Although I may not agree with the exact numbers, I agree with the ESRI assessment that the spike in inflation is not temporary.<\/p>\n

“It could take two years or more. It requires a long-term response as well as temporary measures.<\/p>\n

\u201cAs every doctor knows, it is important to treat the symptoms, and you also need to treat the underlying disease.<\/p>\n

“I believe we need a comprehensive anti-inflationary strategy to reduce the cost of living.<\/p>\n

\u201cCentral banks need to do their part, and I believe it would be better if they mastered quantitative easing at an appropriate pace, rather than raising interest rates at this time.<\/p>\n

“As a government, we can do more by helping to reduce some of the underground high costs that the Irish people are enduring.”<\/p>\n

\n<\/figure>\n

The T\u00e1naiste said that Ireland could not take its economic power for granted.<\/p>\n

He added: “We will not succeed by standing still. We must come before the next wave and catch it.<\/p>\n

\u201cIn recent decades, we have made the right call – pharma, medical devices, food production, digital, financial services.<\/p>\n

“The government has given me the consent to develop a new white paper on enterprise policy.<\/p>\n

“It will be published later this year, setting out a vision for Ireland’s corporate policy by 2030 and beyond.<\/p>\n

\u201cCounseling will be central. We will ensure that the White Paper is informed and challenged by fresh perspectives and the latest thinking.<\/p>\n

“An advisory panel of international experts is established, including experts from organizations such as the OECD (Organization for Economic Co-operation and Development), the World Economic Forum, experts from similar jurisdictions, as well as business people and academics.<\/p>\n

\n

\u201cIreland can go by one #energy<\/a> Importing to be an energy exporter with all the benefits that come with it – more energy security and price stability, employment and #regional<\/a> Development ” @LeoVaradkar<\/a> pic.twitter.com\/mNUnmHVeM7<\/a><\/p>\n

– IIEA (@iiea) March 23, 2022<\/a><\/p>\n<\/blockquote>\n

“The last two years have been a period like no other. We have had to show pragmatism, adaptability and a willingness to do things we never thought before.<\/p>\n

“The pandemic has accelerated pre-existing trends that have reshaped the way we live and work. In particular, it has accelerated the digital transition.<\/p>\n

“The war in Ukraine continues to create uncertainties about energy prices and supply, inflation, food costs and food supply, and will accelerate the green transition and in particular energy independence for Europe.<\/p>\n

“For Ireland, as an open and global economy at the heart of the European Union, it is critical that we rebuild our European economy and prepare for a new world that is greener, more digital, more resilient and fit for the future.”<\/p>\n

X<\/span><\/amp-image-lightbox><\/div>\n