Oireachtas Joint and Select Committees

Wednesday, 22 March 2023

Committee on Budgetary Oversight

Stability Programme Update: Discussion

Dr. Conor O'Toole:

One element to add is that in the recent update on its economic outlook, the International Monetary Fund, IMF, suggested that there should be a switch away from these broad fiscal measures towards tailored, targeted supports that would address specifically the type of household that is exposed to food price inflation and energy price inflation. The levels have increased to such a degree in the past period of time, and even if we are forecasting lower inflation, that does not mean any reduction in prices. That is just a lower price increase. Seeing how prices evolve over the summer period, when we come into the outlook for the winter energy prices next year, it will be a case of having to take an evidence-based decision on whether there is a need for further tailored, targeted measures that would really be supportive of those specific households where there are these challenges. Lower income households in particular are exposed to these.

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