PUBLIC EXPENDITURE MINISTER Paschal Donohoe has said that the Government will be carefully monitoring companies to ensure that they are not “profiteering” from inflation as costs fall.

Speaking to reporters in UCD this afternoon, Donohoe said that while there were positive signs around the rate of inflation, this should not be a cause for celebration.

Last week, the Central Statistics Office reported that the annual rate of inflation had fallen to 6.3% in April, down from 7% in March.

“While there are some positive signs in seeing the trends of inflation begin to go in a better direction, that is a cause of recognition but not one of celebration,” Donohoe said.

“Because for lots, the cost of buying their groceries, the cost of filling up a tank of diesel is still too high.”

He added that the Government would be monitoring whether any section of the economy was profiteering due to the levels of inflation.

“If the cost of making something, if the cost of supplying service, if the cost of keeping somebody’s house warm, if the cost of that is beginning to fall, and there are clear signs that it’s beginning to for some things in our economy, that has to be passed on to the consumer at the earliest possible opportunity.”

Earlier today, Finance Minister Michael McGrath told RTÉ Radio One that Ireland is now “past the peak of inflation” and that price levels, particularly for energy, needed to fall.

“What we need to see now in the weeks and months ahead is actual price levels falling, because that is what really matters to consumers when they go about their day to day business,” McGrath said.

“Inflation is certainly on the way down, but I know that consumers aren’t really yet feeling the benefit of that.”

When asked about the falling price of wholesale energy, McGrath said that energy companies needed to explain why they quickly raised prices but are taking time to reduce them.

“It didn’t take very long for the consumer prices to go up when the wholesale prices moved upwards in the market and so I do think we need to hear a better explanation and we need more detail from the energy providers in relation to the prices that consumers are being charged.”

He said that these wholesale drops had been “quite dramatic” and that consumers now needed to see this reduction passed on.

“Any relief here would be welcome and I do think that it is time that the reductions at wholesale level now are passed on to the consumers.”

The Ditch

Meanwhile, Donohoe also defended comments made by Micheál Martin about news website The Ditch last week, with the Tánaiste saying: “I don’t see The Ditch as an independent media platform at all.”

Asked by The Journal whether it was appropriate for a senior Government figure to criticise media outlets using Dáil privilege, Donohoe said:

“He’s a member of government and he is raising issues that are also in the public interest and I believe it is entirely appropriate that they are raised.”

It comes following criticism from the national Union of Journalists (NUJ), who said it was “not acceptable” for the Tánaiste to use Dáil privilege to criticise work of a media outlet and a number of named individuals.

Additionally, Donohoe confirmed that the Standards in Public Office Commission (Sipo) had been in contact with him recently over their investigation into his election expenses in 2016.

The investigation is centred around failing to declare a donation of services from businessman Michael Stone during the 2016 and 2020 General Elections.

“They’ve had contact with me but I’m going to respect Sipo and it’s a matter for them regarding any steps they want to take,” Donohoe said.