The Central Bank is forecasting that inflation could peak in the coming months at over 10%.
The bank expects households to benefit from wage increases next year.
The bank says Government action taken on energy taxes has limited the negative impact on household incomes.
The bank expects that wage increases next year will be vary a lot between sectors with the biggest increases going to jobs in sectors like technology.
The Central bank is also concerned about the reliance on taxes from the corporation sector for government spending.
Over half of all corporation tax comes from just ten multinational firms concentrated in just two industrial sectors: pharmaceuticals and IT.
Government finances could be dramatically reduced if these firms reported profits elsewhere to avail of more favourable tax rates.
