Thomas Molloy: Unpalatable choices must be made to curb inflation
Published 13/05/2011 | 05:00
THE return of inflation to 30-month highs here in Ireland is part of a much bigger story that has sent prices soaring in most poor and rich countries over the past few months.
Inflation is one of the factors behind the riots that have brought down dictators across North Africa and triggered food riots in India and elsewhere.
In the West, inflation is reducing spending power at a time when wage costs are falling or only rising slowly. The Bank of England warned earlier this week that inflation in our nearest neighbour will soon hit 5pc while salaries are expected to increase by just 2pc.