Thursday, 14 May 2015
Retail Ireland, the Ibec group that represents the retail sector, has expressed concern that the latest consumer price index published today showed the price of goods fell by 3.4% in the year up to the end of April.
Thomas Burke, Director of Retail Ireland, said “today’s inflation numbers show the continuing difficulty facing Irish retailers in recovering costs in the marketplace. Falling consumer prices are further proof of the extremely competitive environment in which Irish retailers are operating. Consumers remain very price sensitive and this is putting retailers’ margins under severe strain”.
“The effect of this trend is particularly stark given the decline in the value of the euro which means an increase in the cost of sourcing products from outside the eurozone for Irish retailers.”
Mr Burke added, “the retail sector has come through a very difficult last 6 years and falling prices remain a significant challenge to its viability.”