Inflation could hit 4% as war hits energy markets

ECB interest rate hike expected on April 30, Bank of Ireland says

Bank of Ireland chief economist Conall Mac Coille.

Irish inflation could hit between 3.5% and 4% over the coming months, reaching highs not seen since January 2024, as the ongoing conflict in Iran continues to impact petrol, diesel, and home heating oil prices, an analysis by Bank of Ireland has found.

Oil and gas markets have seen significant disruption over the last few weeks as a result of the US-Israel war with Iran. Major energy facilities around the Gulf have already been damaged and Iran has nearly halted shipping through the Strait of Hormuz, through which about 20% of the world's oil and liquefied natural gas flows.