Enill: Inflation is being addressed

Responding to concerns raised by both business organisations, Enill said Government is already spending $1.3 billion to ensure that the economy does not experience inflation due to any changes in global oil prices. He explained that the rest of the inflationary pressures which the economy is experiencing is “food inflation” which has been caused by events such as natural disasters in the region. The minister added that steps are being taken to address headline inflation (which is fuelled by rising food prices) and that increases in the repo rate are no cause for undue alarm.

To TTMA and DOMA suggestions that Government reduce expenditure in certain areas and possibly defer certain major construction projects, Enill said Government has taken steps to ensure that the labour, finance and materials for those projects are being brought in from abroad in order to keep that element of inflation out of the economy. The minister added that in the 2005/2006 Budget only $3 billion was allocated out of the total package of $36 billion.

Enill said the majority of Government’s expenditure to date is going to support its initiatives in areas such as health, education, housing and infrastructure.