The increase in inflation to 7 per cent in November was not unexpected, but union leaders have warned the Government that any further upwards movement could trigger another pay review. The Irish Business and Employers' Confederation expressed concern at the figures but predicted they would now start to fall.
SIPTU's president, Mr Des Geraghty, said: "We regard the figure of 7 per cent as being the absolute highest level to which the consumer price index will rise. We would regard the Government as being in breach of the Programme for Prosperity and Fairness (PPF) if the figure doesn't start falling in the new year, and we will be invoking the review clause again if the Minister fails to deliver on the measures we negotiated to reverse the continuing spiral in price rises and bring the inflation figure down to 4.5 per cent on average next year."
An IBEC spokeswoman said it did not anticipate a problem would arise and that inflation had now peaked. A further pay review could not be justified.
But ATGWU leader Mr Mick O'Reilly, a strong opponent of the PPF, expressed doubts about the trends. The 7 per cent rate showed that, "despite all the hype, inflation hasn't yet gone away".
"No one, particularly employers, should be surprised that workers will vigorously campaign on the ground for proper wages which will compensate for the increasing cost of living. At a time when corporate Ireland boasts of unprecedented profits, they cannot expect ordinary people to suffer because of their excessive profit-taking and greed." The Irish National Organisation of the Unemployed was not mollified by assurances that inflation had peaked. Its general secretary, Mr Tony Monks, estimated it would take 10 months for welfare payments to catch up with inflation.
"Last year's £4 increase in the dole was wiped out by June, one month after people received it. The £8 increase from this year's Budget will not be paid until April 2001, and there is a very real fear that the value of this increase will also be eroded before it is paid.
"People on low incomes spend most of their money on basic items like food, heating and children's clothing. Seven per cent inflation rate will push many families to the pin of their collar in the run up to Christmas."
