IRELAND'S RISING inflation rate will push people deeper into their pockets for more money to pay for everything from haircuts to DIY materials to morning coffee in cafes. That's where I'm seeing prices rise. There are plenty of indications that 2006 will be the biggest surge for consumer prices since the euro changeover. New car sales hit a new record in January, indicating some people might be spending their SSIA money before it cashes out. The first SSIA accounts mature just before the June Bank Holiday.
Rossa White of Davy Stockbrokers believes consumer spending will grow at 7.5% in 2006. Bars and restaurants can smell the easy money and they will keep jacking up prices while money keeps walking into their premises. Demand is strong and most people think there's no reckoning period until after the next general election, which is around a year away at the moment.
Douglas Dalby -- "SSIA spree may cause economic overload" in The Sunday Times Business News, April 16, 2006.
