Inflation Pressures Mount as ECB Hike Looms and Household Budgets Squeeze

Euro zone inflation jumped to 3.3% in August, the highest in three years, but the surge is almost entirely energy-driven from the Iran war. Core inflation actually eased to 2.4%, giving the ECB cover for a modest rate hike rather than aggressive tightening. For Irish consumers, this means borrowing costs are stabilising, and the worst-case scenario of runaway inflation is being avoided.

The Bear Case

The inflation headline masks a cost-of-living crisis that's already...