The body says inflation is now running at 2.5 times the EU average and has called for co-ordinated action from the Taoiseach and Ministers for Finance and Enterprise, Trade & Employment.
IBEC has also urged the Government to set an inflation target of 2%.
The organisation adds that the Competition Authority and Director of Consumer Affairs should report regularly on this to the relevant ministers.
It also wants these bodies to co-operate in the more aggressive implementation of competition policy.
IBEC says wage settlements should not exceed the levels in other eurozone countries.
It also calls for significant cuts in day-to-day spending growth and the outsourcing of more government services to the private sector.
IBEC wants greater use of PPPs in infrastructural projects, action on housing and insurance costs, 'a major information campaign' to increase consumer awareness and more transparent pricing from suppliers.
