World Economy

Recovery Threatened

Recovery ThreatenedRecovery Threatened

The Irish Small and Medium Enterprises Association (ISME) have claimed that negative inflation is a cause for concern, Business World reported. Referring to today’s CSO February inflation figures, they have warned that the country’s recovery could be threatened by a deflationary spiral which would discourage consumers from spending. Furthermore, they believe that while there was negative price growth, the main reductions were in mortgage interest and energy, both of which are positive for the consumer and a compelling reason for wage restraint. Additionally, they have called for all state imposed business costs to be benchmarked internationally and for reduced labor taxes on employees and employers to promote job creation.