The components of current inflation in Ireland and the euro area Given the common nature of the shocks that are driving inflation, as well as the global inter-connectedness of many inputs and outputs, it is unsurprising that Irish inflation moved broadly in-line with the euro area average in recent months.
This was not always the case, such as during previous inflationary (early 2000s) and deflationary domestically-driven episodes (after the financial crisis). Some euro area countries are currently experiencing relatively higher rates of inflation, notably Baltic countries, where import trade links with Russia were stronger before the war, including for energy.