Price rises to continue as inflation to peak in early summer

War in Ukraine has also ratcheted up the risks but the economy will expand

In its latest in-depth economic outlook, the ESRI sees consumer price inflation climbing to 8.5% in June and July. File Picture: PA

Consumer price inflation peaking as high as 8.5% in early summer will likely require more Government subsidies, and targeted preferably at households most at risk from surging energy and food bills, the Economic and Social Research Institute (ESRI) has said. 

Ireland's leading think tank said that the Ukraine war has also ratcheted up the risks but the economy will nonetheless expand at a rapid clip this year and in 2023, as long as there are no new major shocks to the supply of energy to global markets.