Energy price shock to squeeze Irish wage growth this year, says Central Bank (opens original article in a new tab)

Rising energy prices from the US-Israeli conflict with Iran are expected to significantly reduce Irish wage growth this year, with consumer prices forecast to rise faster than wages, leading to minimal real wage increases.

• Surging energy prices from US-Israeli conflict with Iran will reduce Irish wage growth this year.
• Central Bank forecasts 3.5% consumer price rise vs 4% wage growth, leading to 0.5% real wage increase.
• Global energy prices are expected to remain elevated through 2027-2028, impacting inflation and household budgets.