Strong wage gains set to underpin growth in consumer spending, says AIB

While inflation has fallen, AIB warned that Ireland remains exposed to movements in international commodity prices and domestic price pressures

With real wages rising, the report expects unemployment to remain close to the current low levels, with employment to top a record 2.8 million people by 2026, supported by strong population growth. 

Rising wages will see robust growth in consumer spending, AIB has forecasted, with gains in pay now outpacing the rate of inflation. 

In its Economic Forecast Report for October, AIB said inflation has returned to its normal range and is expected to remain there for the near term, with annual price levels as measured by the EU showing inflation falling to 1.9% in 2024, down significantly from 5.2% last year.