The Irish Congress of Trade Unions has predicted that inflation could hit 6.5% by January because of interest rate increases by the European Central Bank.
ICTU General Secretary David Begg said the Government should have a word with the head of the ECB, Jean-Claude Trichet, because the rate increases would damage the Irish economy, hinder investment, and make life impossible for people trying to pay mortgages.
Mr Begg has already called for a review of the tax system, including the taxation of capital gains as income.
However, the employers' group IBEC described his proposals as unhelpful, unrealistic and a throwback to the Dark Ages.
Director General Turlough O'Sullivan said enterprise was the only way forward for the economy, and that Ireland must be an attractive place for industry to come.
He described the Congress proposals as counterproductive, adding that they would neither atrract nor retain investors in ireland.
Head of the Construction Industry Federation Tom Parlon warned that the sector was under severe pressure to keep businesses going - with some companies even facing liquidation.
He called for pay restraint and incentives to encourage the sale of houses and to get confidence back into the market.
Government says moves are 'not a budget'
Meanwhile the Minister for Finance has said that the savings in public spending to be announced next week will not be a budget.
Speaking on his way into a conference in Dublin on financial regulation, Brian Lenihan said the final decision on those savings would be made at a cabinet meeting next week. Mr Lenihan said that in the meantime he would have detailed discussions with cabinet ministers.
He said the announcement next Tuesday would not be a budget, but would simply ensure that that the Government would live within the projected allocations for this year.
Mr Lenihan said the Government had to make sure that it dealt with the danger of overruns in individual departments. He also said there had to be a start on curbing current spending in order to ensure that the essential capital projects could be prioritised.
