"Irish wage growth will not keep pace with inflation this year, tightening the squeeze on household finances, according to new forecasts from AIB. Wages are expected to rise 3.7pc, in aggregate this year, but inflation is now tipped to be 4pc - and potentially much higher, if the Strait of Hormuz blockade continues. It means a drop in 'real incomes' or buying power."
Irish wage growth is expected to rise 3.7% in aggregate this year, while inflation is forecast at 4%. Inflation could be higher if the Strait of Hormuz blockade continues. The gap between wage growth and inflation reduces real incomes, meaning households will have less buying power. This dynamic tightens the squeeze on household finances as costs rise faster than wages. The forecast implies that wage increases will not fully offset inflation pressures during the year.
Read at Independent
Unable to calculate read time
Collection
[
|
...
]