Dan O’Brien: Central bankers say higher inflation is transitory, and they’re probably right

Inflation has increased and decreased over the state’s history – and it’s never a mystery as to why. As such, the current spike is easily explained

7th November, 2021
Dan O’Brien: Central bankers say higher inflation is transitory, and they’re probably right
Footfall on Grafton Street in Dublin: a factor driving inflation is goods prices, as consumers switch from buying services to buying goods in a time of pandemic. Picture: Fergal Phillips

Over the aeons, inflation has waxed and waned, and the past century in Ireland has been no different.

The years of the Great Depression brought drastic price falls. As the accompanying chart shows, Ireland had four consecutive years of falling prices in the first half of the 1930s.

The Second World War brought severe shortages of almost everything. In 1940, the first full year of the war, consumer prices in Ireland were 15 per cent...

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