Economy to grow faster than expected but consumers will still feel price pinch, says Ibec

Ireland's 'mood music' is lighter but households are still under pressure as 71% of firms pass cost increases on to customers 

Ibec upgraded its forecasts for consumer spending and overall domestic demand by 0.5 percentage points. File picture: Denis Minihane

The Irish economy is set to grow faster than expected this year, but households and businesses could face more price pressures, according to Ibec.

In its latest economic outlook, Ibec forecasts the economy will expand by 3.6% this year, an increase on its November prediction of 2%, as a prolonged recession in Europe is now “unlikely”.