Ronan Lyons | Personal Website
Ronan Lyons | Personal Website

hicp

A lot done, more to do – prices in the eurozone and Ireland’s competitive adjustment

The EU has released its latest consumer price survey, which found prices in Ireland are about 18% above the EU average – although that varies by sector, with clothes and footwear below average and food (and alcohol) significantly more expensive. This post tracks European countries’ changing competitiveness over time, with Ireland’s readjustment sizeable but not yet complete. Indeed a contrast with Iceland and the UK highlights the stark difference between countries that are forced to devalue and those than cannot. Read more

Competitiveness regained? How prices in Ireland compare to the rest of the eurozone

Eurostat’s publication of prices of food and drink across Europe has highlighted again how expensive Ireland is relative to its neighbours. This post examines prices across Eurozone members since 2001 and finds that the damage was done in Ireland by 2003 – and that much has been reversed in the last two years. It’s unlikely, though, that Ireland will rank below third in price league tables any time soon. Read more

With commodity prices rising, inflationary pressures start to mount in the eurozone

Inflation in the eurozone has jumped up in recent months from -0.5% to +1.0%. This post examines the likely pressures on eurozone inflation in 2010, by looking at the prices of commodities. Using World Bank data on commodity prices, it finds rapid inflation in commodities since late 2009. With the current over-reliance of macroeconomic policy on interest rates, this poses a threat to eurozone growth. Read more