The Taoiseach said the Minister for Finance would take whatever action he could on the inflation rate.

Mr Ahern was replying to the Fine Gael leader, Mr John Bruton, who asked him what his view was of the 4 per cent inflation rate. The Taoiseach said price stability was an important part of economic policy.

"I am conscious the Government, through its policies, by putting a tax on cigarettes, have put up the rate by about .78 of 1 per cent, and these are matters of concern.

"Interest rates, petrol prices and the price increase in cigarettes have created the upward trend in recent months. The Government always takes due recognition of the monthly figure, whether it is lower or higher than the previous figure."