ESRI: Finances in good shape to fund any new household inflation support

Next week's exchequer returns will determine if the Government will need to hike taxes to mitigate Ireland's soaring cost of living

As energy, utilities, and groceries soar in price, Ireland's healthy public finances should provide scope for the Government to help vulnerable households, according to Prof Kieran McQuinn.  Stock picture: Julien Behal/PA

The Government’s finances are in good enough shape to finance any new round of measures to fight inflation, without the need to hike taxes, according to the ESRI.

The comments come as the Government prepares to publish next week the latest exchequer returns, which will provide more light on how consumers and businesses are coping with the acceleration in prices and costs.