Economics

Inflation to fall back to 2% target by 2025, EY says

Financial services firm predicts more moderate economic growth in the years ahead

The annual rate of inflation stood at 6.1 per cent in June, down from 6.6 per cent in the 12 months to the end of May. Picture: Getty

Inflation will decelerate to 5.8 per cent in Ireland by the end of 2023 and will fall back to the European Central Bank’s target of 2 per cent by 2025, EY has forecast.

The financial service provider said that headline inflation has begun to “ease noticeably” since the beginning of the year, and is expected to continue to do so thanks to a reduction in the cost of energy and tighter monetary policy.

The firm’s ...