Violet-Anne Wynne (Clare, Independent)
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295. To ask the Minister for Finance if an inflationary analysis has been conducted regarding the once off payments included in Budget 2025; and if he will make a statement on the matter. [45288/24]

Jack Chambers (Dublin West, Fianna Fail)
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Inflation has eased considerably this year and has been running at or below 2 per cent since March. Indeed, inflation was just 0.1 per cent in October, among the lowest rates in the euro area. While much of the easing in headline inflation is due to falling energy prices, core inflation (i.e. excluding energy and food prices) has also eased considerably and is now below 2 per cent.

Despite the easing in inflation, I am acutely aware that price levels remain elevated. That is why Budget 2025 included a cost of living package, designed to support the most vulnerable and ease the financial burden over the winter months. One-off measures in Budget 2025, while still significant at €2.2 billion, are lower than the €2.7 billion allocated last year. This will help boost demand in the economy and will have a relatively modest positive impact on inflation over the coming period.

In general, the overall fiscal package will help support further improvements to the supply-side of the economy which will help address underlying inflationary pressures over the medium-term. In other words, eliminating bottlenecks will help reduce price pressures.

On the taxation side, a key priority of Budget 2025 is to avoid workers paying additional tax simply because they move through higher tax brackets due to wage growth. On the expenditure side, it is important to note that the growth rate in public spending next year is set to decelerate relative to this year.

I believe that we have got the balance right between supporting vulnerable households, continuing to deliver high-quality public services and improvements to our capital infrastructure, while minimising the impact of budgetary policy on inflation.