In this week’s public policy bulletin we take a look at last month’s inflation rates as recorded by the CSO as well as the latest IMF forecasts for the Irish economy. In addition, we report on a new appointment to the Financial Services and Pensions Ombudsman Council as well as the latest GDP estimates for the UK in February from the Office for National Statistics.
Inflation dips to 7.7 percent in March – CSO
The annual rate of inflation eased to 7.7 percent in March from 8.5 percent in February according to the latest Consumer Price Index released this week by the Central Statistics Office (CSO). Marking the lowest rate of inflation recorded in 11 months, prices have nonetheless been rising on an annual basis since April 2021, with annual inflation of 5 percent or more recorded in each month since October 2021. The most significant increases in the year were seen in electricity (+62.7 percent) and gas (+85.9 percent) costs, along with higher mortgage interest repayments (+35.3 percent). You can read the full index here.
Latest IMF forecast predicts slowed growth for Irish economy
According to the latest Fiscal Monitor Report from the International Monetary Fund (IMF), Ireland's economy is predicted to slow both this year and next in the face of ongoing inflationary pressures. While the economy will continue to expand, growth in our GDP will slow from 12 percent in 2022 to 5.6 percent this year, and then further to 4 percent in 2024. This trend is tipped to continue in future years, with a wider forecast by the IMF predicting GDP growth of just 3 percent in 2028. While these estimates still place Ireland ahead of the Euro zone as a whole, the report starkly notes how the global economy is ‘entering a perilous phase’ amid inflation which has proved to be ‘much stickier’ than originally anticipated.
New appointment to Financial Services and Pensions Ombudsman Council
The Minister for Finance, Michael McGrath, this week announced the appointment of Peter Rossiter to the Financial Services and Pensions Ombudsman Council for a five-year term. Peter Rossiter is a Chartered Accountant and former Chief Risk Officer with extensive banking experience in the OECD and emerging markets. The functions of the Council include determining the financial services industry levy, keeping under review the efficiency and effectiveness of the Ombudsman and advising the Minister for Finance. Legislation requires that the Council shall consist of not less than 5 and not more than 7 members (including the chairperson) as the Minster decides.
UK economy shows no signs of growth in February
The UK economy recorded no growth in GDP in February of this year according to official figures released this week by the Office for National Statistics (ONS). Civil service strikes and low energy consumption offset growth in areas such as construction - which grew by only 2.4 percent. Meanwhile, services production fell by 0.1 percent in the month, following growth of 0.7 percent in January of this year. The largest contributor to negative growth in the services industry was education, which fell 1.7 percent in a month where teacher strikes took place. February’s stagnation follows the economic growth of 0.4 percent seen in January of this year. You can review the full statistical release here.
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