There has been a growing unease about the amount we are spending, withmany people beginning to feel that we are not getting a fair deal,writes Colm Ward.

In Ireland, the consumer is king. We have more money to spend and more opportunities to spend it than before. And we vote with our wallets. If we don't like your prices or your service or the colour of your hair, we will take our business elsewhere. Remember, the customer is always right.

Or is he or she? In recent months, there has been a growing unease about the amount we are spending, with many people beginning to feel that we are not getting a fair deal.

According to Mr Dermot Jewell, chief executive of the Consumers' Association of Ireland (CAI), people are finding that they are getting less and less for their euro.

"People are spending more money - they know they are - and it's taking forever to get someone to listen," he says.

The CAI is a non-commercial body set up to protect the interests of consumers. It does this by conducting surveys, highlighting consumer issues, lobbying the Government on behalf of consumers and advising the public on their rights as consumers.

In recent months, the association has seen an increase in the number of complaints about rising prices.

"There is no doubt there is a problem and this is most definitely focused on the services industry in areas such as cinemas, hairdressers, pubs and restaurants," according to Mr Jewell.

But is there really a problem or is it all just in the imagination? One of the best measures of overall price trends is the consumer price index (CPI). Each month, the Central Statistics Office carries out a survey of prices across a wide range of goods and services, designed to represent the spending of a typical household. The CPI is used as a measure of the overall change in the prices of the goods and services that people would buy over time.

The latest figures show that consumer prices in August increased by 0.6 per cent. In other words, the average household spent 0.6 per cent more on goods and services than in July. Over the past 12 months, prices have increased by 4.5 per cent.

Some of the biggest increases over the year were in health, miscellaneous goods and services, education, restaurants and pubs.

Some believe that these increases were fuelled by the changeover to the euro. However, a recent report from the Director of Consumer Affairs, Ms Carmel Foley, indicates that the changeover actually had very little impact on price increases, with only a small number of retailers and professionals taking advantage of the changeover to raise their prices.

Others have blamed the rising prices on the increasing cost of "inputs" to business, such as insurance, wages and energy.

Mr Pat Delaney, director of the Small Firms Association (SFA), which represents more than 8,000 small businesses in the Republic, accepts that prices have increased in certain areas but believes small firms are under huge pressure from a number of sources.

"Prices are going up but profit margins are not," he says.

The SFA has identified a number of factors that it believes increase the cost of doing business in the Republic. Foremost among these is the growing cost of wages, which rose by 9 per cent last year compared with an average increase of 2.8 per cent in the euro zone, according to the SFA.

Other increases - in VAT, insurance, energy prices and rental costs - have put pressure on small businesses, such as shops, to raise their prices.

Mr Delaney believes that comparisons with other countries such as Spain and Portugal, where prices are lower, are not valid due to the greater cost of doing business in the Republic.

His views are shared by the Vintners Federation of Ireland, the body that represents publicans.

"Since 2001, the sector has witnessed wage cost increases of between 8 to 15 per cent, insurance hikes of 40 to 200 per cent, electricity increases of 14 per cent with a further 9 per cent upcoming, and other overheads also rising substantially. Drinks suppliers also increased their prices in March of 2002," according to federation president Mr Joe Browne.

"Publicans have no choice but to pass these price increases on to their customers in order to maintain a viable business," he says.

Many restaurant owners are also experiencing an increase in costs that are reflected in price increases. Mr Henry O'Neill, chief executive of the Restaurants Association of Ireland, fears for the future of many of the organisation's members. He believes that action must be taken to stem the rising cost of insurance premiums.

CPI figures show that prices in the restaurant, hotel and licensed premises sector have risen by 7.5 per cent in the past 12 months.

Another report, details of which were made public this week, shows that prices in this sector have increased by one-third since 1996, while the cost of certain goods and services aimed at tourists rose by as much as 45 per cent. This compares to average price increases of only 22 per cent in other areas of the economy, according to the report, which was done on behalf of the Irish Tourist Industry Confederation. The report suggests that the Republic is becoming too expensive and that, if prices are not lowered, tourists will stop coming here.

Mr Jewell believes consumers are entitled to an explanation for the rising prices. He suggests the Government should demand that everyone involved in the supply of goods and services explain why prices have increased.

In the meantime, consumers can take matters into their own hands by becoming more "personally particular" about where they shop.

"Shop around," he urges. "You can save a lot by shopping around on a regular basis. With petrol, for example, you can save a fortune by driving up the road. It's the same with items like CDs and videos."

Related websites: Office of the Director of Consumer Affairs: www.odca.ie ; Consumers' Association of Ireland: www.consumerassociation.ie; Central Statistics Office: www.cso.ie