Before we all join Chief Whip Seamus Brennan in patting ourselves on the back for being wonderful members of a booming low inflation economy, we would do well to herald the warnings from almost every economist that the figures for July, released last week and showing an annual rate of inflation of 1.2 per cent, are as good as it is likely to get.

Mr Brennan hailed the strong public finances, moderate inflation and monetary stability which have created the positive economic conditions we now enjoy. Leave aside for a moment the nonsense about monetary stability in the case of the Republic which still trades largely outside the euro zone and is therefore buffeted by the vagaries of the euro's difficult birth.

The public finances are healthy only because tax revenue has far exceeded expectations. It is worth remembering that Government day-to-day spending - as against capital investment - continues to gallop ahead and public sector reform remains a challenge largely untackled.

If inflation does start to rise and the Republic finds its competitive edge undermined, some of these underlying weaknesses may very quickly take centre stage. Where will Seamus be then?