Housing crisis and European heatwaves may keep inflation high, warns advisory body

The National Competitiveness and Productivity Council (NCPC) has warned that recent wildfires in southern Europe, such as this one near Athens in Greece, could "potentially add upward pressure to food and energy costs" when combined with the heavy rainfall experienced in Ireland and the UK in recent months. Photo: Costas Baltas/Anadolu Agency

The Government has been warned that high inflation could sustain over the next year or so due to increased food prices, heatwaves and developments in the housing market.

It is understood the National Competitiveness and Productivity Council (NCPC) has warned that the short-term economic impact of recent environmental events, such as wildfires in southern Europe, remains unknown but could "potentially add upward pressure to food and energy costs" when combined with the heavy rainfall experienced in Ireland and the UK in recent months.