Oireachtas Joint and Select Committees

Wednesday, 17 April 2024

Committee on Budgetary Oversight

Report on Indexation of the Taxation and Social Protection System: Discussion

Dr. Tom McDonnell:

Briefly, in regard to the point on inflation, the €296 million described there is well under 1% of consumption in the economy, which is only one source of the inflation. While there may be a very modest once-off structural impact, it would not have an ongoing, meaningful impact on inflation. Anything that adds demand to the economy has a possibility of creating inflation in some way, but the actual impact of this on inflation would be vanishingly small.

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