Energy market uncertainty to fuel further price hikes

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Economists have predicted that the indirect impact of the Russia-Ukraine crisis on energy markets will affect the Irish economy and consumers more than the potential disruption to Ireland's trade caused by EU sanctions imposed on Russia.

The EU is today beginning to implement a limited package of first round measures against Russia in response to its actions over Ukraine.

The Central Statistics Office does not break down the makeup of that total, but business group Ibec said much of it is thought to be IT services, with financial services also featuring prominently.However, Ibec chief economist, Gerard Brady, estimates that any possible direct impact on trade of goods and services because of sanctions will be overtaken by the indirect effects on the energy markets.

"What it ultimately means is probably higher prices, but what's really the real killer here is the uncertainty that this has done," she said.We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.

He also said that futures markets are pointing towards further increases in the medium term if the issues are not resolved.

 

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