Oireachtas Joint and Select Committees

Wednesday, 24 November 2021

Committee on Budgetary Oversight

Inflation: Discussion (resumed)

Mr. Gabriel Makhlouf:

I will invite Dr. Cassidy to comment in case he knows more than me about the specifics mentioned by the Deputy but I will say two things. First, and I do not just mean myself and Dr. Cassidy, but we at the Central Bank of Ireland and we at the European Central Bank are taking the impact of current high inflation on the purchasing power of people very seriously. I absolutely recognise, in particular, that current high energy inflation has a negative and concerning impact on some households.

Let me put this in economist language. The energy shock that we face right now is an international and a global one. How it is going to affect particular types of energy consumption in particular parts of the country? I am not sure whether we have enough information on that. Certainly the whole of the industrialised world right now is facing the sort of energy shocks that we are talking about. Does Dr. Cassidy wish to add something?