Pearse Doherty (Donegal, Sinn Fein)
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29. To ask the Minister for Finance if he will provide updated projections from his Department on the rate of inflation for the years 2022, 2023 and 2024; if the projections will be disaggregated by income decile and household type; and if he will bring forward an anti-inflation strategy as called for by the Tánaiste and Minister for Enterprise, Trade and Employment in response to the causes of inflation. [9695/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, my Department publishes two sets of macro-economic forecasts each year, one in the spring and one in the autumn, in line with our requirements under EU law.

Our spring forecasts will be published in April and set out in the Stability Programme Update. As is the norm, this will include inflation projections for the next few years. The projections will cover headline and core inflation and, in line with standard domestic and international practice, are not disaggregated by income group or household type.

I am conscious of the acceleration in consumer price inflation over the past six months or so, with similar trends seen across advanced economies. Several factors are behind this, including higher energy prices and global supply chain disruptions. On the domestic front, the strength and speed of the economic recovery has led to a mismatch between demand and supply, including in the labour market where I note CSO figures published last week showing the highest ever level of employment in our country.

The rate of inflation is expected to ease over the course of this year as temporary factors fade, demand eases and supply catches up.

Nevertheless, the Government is very conscious of the cost of living pressures facing households and, accordingly, introduced a number of measures in Budget 2022covering a range of costs to people; including health, income supports, family and child costs, energy, education and housing costs.

In December, the Cabinet also approved an energy credit of €100 to be made this year to an estimated 2.1m domestic electricity account holders.

The Government announced another €290 million package on February 10^thto further assist households, bringing the overall package including the aforementioned energy credit, to €505 million. The measures include an increase in the energy credit to €200 per household including VAT and an additional one-off payment of €125 for all those in receipt of the fuel allowance in March. The Drugs Payment Schemecontribution threshold will be reduced to €80 per month, while the €10 increase to the weekly income threshold of the Working Family Paymentwill be brought forward to April from June. Public transport fares will be reduced from April until the end of the year, while school transport family caps will be reducedat both primary and post-primary level.

In summary, the Government’s response has been timely and forceful and will help to alleviate cost pressures for households, in particular those on low incomes.