These factors contributed to the sharp rise in inflation since the middle of 2021 and, even if there has been some easing or even a reversal in these factors, the adjustment process to these shocks is still ongoing and is not likely to come to a sudden stop.
[1] I would like to thank my Central Bank colleagues who contributed to my remarks across the range of topics. LeBlanc, J., & Lydon. R., 2019 “Indebtedness and spending: What happens when the music stops?”, Central Bank of Ireland, Research Technical Paper, Vol 2019 No. 14. Ibid, page 30. Ibid, page 3.