Sometimes the timing of certain events tests the patience of our national planners. Just as the Government, employers and unions go searching for approval of substantially more generous pay rises in the next partnership agreement, news of the highest rise in inflation in 10 years emerges from the Central Statistics Office.

The 4 per cent rate puts a different gloss on the 5 per cent pay rises on offer, especially when one hears that the rate is likely to rise further before it falls.

It's all well and good the economists pointing out, correctly, that the bulk of the rise is accounted for by the punitive rise in tax on tobacco, together with rising transport costs, largely due to the rising price of oil. The fact remains that the tobacco rise will be factored into inflation figures for some time and inevitable mortgage rate rises will also add fuel to the fire. And that is before the impact of Mr McCreevy's give-away Budget kicks in . . .

Dominic Coyle can be contacted at dcoyle@irish-times.ie