Oireachtas Joint and Select Committees

Tuesday, 19 September 2023

Committee on Budgetary Oversight

Pre-Budget Engagement: Central Bank of Ireland and ESRI

Dr. Robert Kelly:

Exactly, as core and non-core. These supports really had a role early in the shock of shaping that shock and ensuring the most vulnerable were protected. To describe this expenditure, I used to use the phrase "temporary and targeted". I think it is now targeted and sustainably funded. We must think about what elements of the cost of living are going to remain with us. I say this because there can sometimes be a misconception regarding the difference between the price of things and the cost of living and inflation. There is no projection which states that prices are going to fall broadly across the board. They are just going to rise at a more moderate pace. If cohorts of households are going to experience difficulties and need further supports, therefore, then we will need to think about how this will be done on a more permanent basis. This is the reality over time.

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