The European Central Bank can be expected to reaffirm its view that interest rate rises are very unlikely next year

The recovery in labour markets has been particularly impressive. Corporate and household balance sheets are in a very robust state

The labour force has increased by 170,000 or almost 7% in the past two years, with the participation rate standing at 65%, up sharply from 62.5% in 2019

Expectations in regard to interest rates are having a perceptible impact on currency markets.

UK exports in the third quarter were almost 15% below their levels of three years earlier while Eurozone exports have risen back above their levels 

The view of central banks remains that the spike in inflation will not be sustained and annual rates should start to fall back towards target from around the middle of next year

The release of pent-up demand and a rebound in commodity prices, especially in the energy sector, have caused inflation to surge this year

Budget 2022 was framed against a backdrop of a strongly recovering economy and rapidly improving public finances as Ireland emerges from the grips of the Covid-19 pandemic, though the virus is still very much with us.

Base effects alone are going to see the inflation rate rise further in the next couple of months

The key factor behind the upward pressure on prices is the ongoing shortfall in supply