With confirmation of the latest EU data indicating that inflation across the eurozone rose by a further record 5% in December 2021, it is obvious that huge pressure is being exerted on people’s finances – putting many into a crisis situation.
Deputy Mattie Mc Grath, leader of the Rural Independent Group of TDs, warns that “spiralling” inflation is having a “major” impact on workers and families. The group’s view is that surges in energy prices stemming from “zealous and poorly planned green policies” are the main driving forces behind record high living costs in Ireland.
“Rising consumer costs on everything from groceries to home heating and electricity are having a crippling impact,” he said. He stressed that many households have experienced a “significant” income drop due to Covid-19 restrictions and lockdowns, while outgoings continue to climb.
A senior executive on the board of the European Central Bank, Ms. Isabel Schnabel, also warned that the green energy push aimed at tackling climate change is likely to keep energy prices higher for longer.
This may force the ECB to withdraw its stimulus and increase interest rates more quickly than planned. “We know that the crisis is far from over. Yet, recent consumer surveys show that spending is not coming back yet.”
“This signals that the runaway printing of money by the ECB, which our government previously supported, is not reaching ordinary households,” she said.
Mc Grath’s deduction is that, “We need to see structured governmental action on the crippling costs of living. The stagnant wages or welfare supports are not keeping pace with the skyrocketing inflationary increases, and this is leading to a 1970s style wage-price spiral.”
LSL News