Opinions on Irish inflation in the medium terms

Green

Registered User
Messages
592
I would be grateful for any opinions posters might have on the rate of Irish inflation over the next three to five years?
 
Inflation is tricky to predict that far ahead.


Currently HICP inf rate is - 1.2% (deflation).

With a banking crisis, probable tax rises, likely more public spending cuts, there doesn't seem to be many reasons for much internal domestically-generated inflation.

Pay rises will be 0% or very low over next few years.

Oil prices, commodity costs, etc. - these could rise and cause imported inflation...........

The ECB target is for close to 2% HICP inflation.

For what it's worth, I suggest low inflation for the next 2-3 years, maybe 0-2% pa. I wouln't be surprised if it was in the range -1% to +1%.
 
Back
Top