Headline inflation in the Irish economy could double to 4.2 per cent in the coming months if there is a prolonged conflict in the Middle East, the Central Bank has warned. In its latest quarterly bulletin, the regulator said the current spike in oil and gas prices would lead to lower growth and higher inflation and that lower-income households would be “disproportionately” impacted. The bank’s central projection, based on where oil and gas prices were on March 11th, sees inflation averaging 2.9 per cent this year. “Higher energy costs have already been reflected to varying degrees across the price of different fuel types, and these are likely to have both direct and indirect effects on inflation facing businesses and households,” the Central Bank said. On the outlook for housing, the Central Bank sees completions rising to a post-Celtic Tiger record of 40,000 this year and to 43,000 and 46,000 in 2027 and 2028.

Source: The Irish Times March 26, 2026 15:01 UTC