Inflation here will be higher than elsewhere in the EU, eclipsing wage growth
A sustained blockage of the Gulf could push inlfation to the 6pc-7pc level. Image: Getty
Irish wage growth will not keep pace with inflation this year, tightening the squeeze on household finances, according to new forecasts from AIB.
Wages are expected to rise 3.7pc, in aggregate this year, but inflation is now tipped to be 4pc – and potentially much higher, if the Strait of Hormuz blockade continues. It means a drop in ‘real incomes’ or buying power.