With prices continuing to rise, inflation hitting a 40-year-high, and the war in Ukraine still raging, the question is: are we facing a recession?
Tanaiste Leo Varadkar insisted that is not the case and said he is confident that Ireland will avoid a recession.
However, he gave an ominous update saying that the cost-of-living squeeze will “feel like a recession” for people who don’t receive a pay rise.
In an interview with The Irish Times on Wednesday, Mr Varadkar admitted 'that a lot of people’s incomes will not rise as fast as the cost of living "and for them it will feel like a recession".'
This comes after the annual rate inflation hit an almost 40-year high of 9.1% in June, latest figures from the Central Statistics Office show.
READ MORE: Politicians to be paid thousands for travel expenses to Dail while it isn't even sitting
The shocking increase in prices is mostly driven by surging fuel and energy costs, due to the war in Ukraine, as well as rising food prices.
Putting fuel in your car has become significantly more expensive since last year, with the cost of petrol up 43.8% and diesel up 50.7%.
Irish energy costs also rose at alarming rates. The cost of electricity was up 40.9% and natural gas was up 61%. The cost of heating your home with oil was up a huge 115.4%.
Buying food groceries has also become more expensive with an increase of 6.8% since last year.
Meanwhile, Irish financial expert Eddie Hobbs has predicted a recession will hit by autumn 2022 saying that “all the signs are there” for a financial crisis to hit Ireland this year.
In an interview with the Irish Mirror last month, he said: “We will likely be in recession by early Autumn, but definitely by Winter. All the signs are there.
“Right now, we are in a vortex, on the way to recession. We’re looking at the economy contracting, job losses, business closures. It’s a f**king firestorm.”
He added: “The next financial crisis is upon us, except this time, it’s in the guise of the runaway cost of living. The price will be paid by the working people getting poorer."
READ NEXT:
- Samsung ad branded 'tone deaf' in wake of Ashling Murphy killing 'not irresponsible', watchdog finds
- Met Eireann give chance on edge of UK's 40C heat reaching Ireland as dry and sunny spells remain
- Stacey Solomon opens her pool into 'village lido' as heatwave closes local schools
- Solar storm warning as ‘chaotic’ space weather set for ‘direct hit’ with Earth amid blackout fears
- Irish farmer builds 40 foot hay pool for neighbours to cool down during hot weather
Get breaking news to your inbox by signing up to our newsletter
