We expect it to remain above 2 per cent for most of this year but our forecasts project it to settle below our 2 per cent target in 2023 and 2024. In Ireland inflation also surged in recent months, reaching 5.7 per cent (HICP) in the year to December.
Transport, housing and energy have been the main drivers, although some increase has been evident across most parts of the consumption basket. This inflation is not experienced equally across households. People on lower incomes are especially affected by rising energy and rents.