Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

We had assumed a base case scenario of inflation within our economic forecast of approximately 6% on average for the year. When the Minister for Public Expenditure and Reform and I published the stability programme update in April and the summer economic statement a couple of weeks ago, we acknowledged there was a risk to that 6% and said there could be changes that would move it to between 8% and 9%. Even though it is still too early to say where this rate is going to land overall for the year, we are clearly moving into the higher inflation scenario as opposed to the 6% one. We will produce our next inflation forecast on budget day.