The ongoing conflict in the Middle East and its impact on energy markets, raises significant uncertainty in the outlook for inflation and growth in 2026.
So far, the ramp up in energy prices is less than was seen in 2022, particularly for gas prices which remain a fraction of the 2022 peak. However, Brent Crude has broken through the key $100/barrel level this week.
The question remains how the Irish economy would fare if it does face a sustained shock like in 2022.
However, while Ireland is exposed to energy price shocks, we have also built-up significant fiscal resilience to weather them.
