Most importantly however is the effect the stability of these economic variables have on public welfare, on households, on families, on businesses, on consumers, on people. Stable prices are especially important for low income households as due to the different mix of goods households purchase, price in ation tends to affect lower income households more.
And stable prices help households to plan for the future with con dence. Stability enables businesses to grow, to create new jobs. Stability enables governments to make sustainable, long-term investment decisions in health, education or transport for example. The public good is a fundamental guiding principle of all that we do at the Central Bank of Ireland.