Irish households face large hit to incomes as food drives inflation to 8% this summer

The Central Bank predicts the effects of the invasion of Ukraine will weigh on the Irish economy for at least the next two years

Mark Cassidy, director of economics and statistics at the Central Bank of Ireland: 'Clearly, the economic effects of the invasion of Ukraine have added considerable uncertainty.'

Hefty price hikes for food products will add to existing energy costs to drive inflation to 8% by the summer, helping to deliver a major blow to Irish household incomes, the Central Bank has warned. 

Its latest quarterly report predicts the effects of the invasion of Ukraine will weigh on the Irish economy for at least the next two years, as inflation stays higher for longer and price increases act as a drag on income growth, despite a quickening pace in wages growth.