Central Bank revises down inflation forecast

Bank now expecting inflation for 2023 to run at 5%, revised down from 6.3%, while core inflation — which excludes food and energy prices — is expected to run at 3.5%

Energy prices will be a much smaller feature of inflation in 2023, whereas food and more domestic services inflation are set to become more prominent.

The Central Bank has revised down its inflation forecast for this year to 5% but uncertainty still remains due to the potential for energy shocks or escalating geopolitical tensions.

It also sees fairly modest growth in the Irish domestic economy over the next few years compared to previously high annual rates.