BoI predicts inflation fall and 1% economy rise

A FALL in inflation in the first half of this year should see the economy grow by around 1% this year in GDP terms.

Bank of Ireland, in its latest quarterly economic outlook, has forecast GDP growth of around 1% in 2012, slightly more bullish than most domestic economists, but still down on its initial outlook of 1.5% growth.

Chief economist Dan McLaughlin said the economy grew by 1% last year, at best, with inflation rising from 1.3% to about 3%.