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Ireland sees wages rising 7% this year, 6% a year thereafter

Published 12/10/2021, 15:40
Updated 12/10/2021, 15:45

© Reuters. FILE PHOTO: Commuters walk into work in the morning in the financial district of Dublin, Ireland October 18, 2018. REUTERS/Clodagh Kilcoyne

DUBLIN (Reuters) - Ireland's finance ministry expects wages to grow by 7% this year and at, or just below, 6% a year from 2022 to 2025 as the economy recovers quickly from the COVID-19 crisis and some sectors face labour market shortages.

Inflation is forecast to peak at 4.5% in the final quarter before falling back below 2% during next year, but the ministry said the average rate could be closer to 3.5% in 2022 if there was prolonged global supply chain disruptions, stronger short-term domestic demand and higher energy prices.

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