Further signs of inflationary pressure in the economy emerged yesterday with the publication of the wholesale price index for December. Wholesale, or factory gate prices, rose by 1.5 per cent on November's levels and were up by 5.1 per cent year-on-year. This compared with a year-on-year increase of 3.6 per cent in November.

The Central Statistics Office said the increase in excise duty on tobacco in the December budget and the continued strength of the dollar and sterling against the euro were the main factors behind the December rise in prices.