We may see a welcomed reduction in the cost of living in the next few months.
The Central Bank says inflation remains high but has begun to ease. Both headline and core inflation are now expected to be lower than previously forecast in 2023, at 5 per cent and 3.5 per cent respectively.
In its latest quarterly economic bulletin the Bank says the global economy has performed better than expected and price pressures are now easing.
Robert Kelly, the Director of Economics and Statistics at the Central Bank, says household incomes are expected to recover gradually this year.
''It is likely the overall inflation has now peaked and in the absence of any further energy price shocks, we expect it to moderate this year and next.''