Cost of Living Expected to Increase Further

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Economists are predicting inflation of 6.7% for Ireland as the cost of living is expected to increase throughout the year.

The Economic and Social Research Institute (ESRI) says the war in Ukraine is disruptive and causing uncertainty in respect of the supplies of many goods, especially energy and wheat.

According to the ESRI, “increases in consumer prices are likely to accelerate as the conflict disrupts energy markets.”

Throughout 2022, Ireland’s Gross Domestic Product (GDP) is expected to grow by 6.2% and unemployment is also likely to continue to fall to 5% by the end of the year. This will be of benefit to the public finances.

Commenting on the latest ESRI report, Kieran McQuinn of the ESRI says that despite the rising uncertainty in the market, there is still a positive outlook for Ireland’s financial position.

“While the outlook for the Irish economy is still positive in 2022 and 2023, the impact of the Russian invasion of the Ukraine will lower the expected growth rate of the Irish economy and lead to higher rates of domestic inflation,” Mr McQuinn stated.