DAVY VIEW

Yesterday’s Residential Property Price Index (RPPI) showed inflation accelerating to 10.9%, broad based across regions, with an enormous 2% monthly gain in August. This leaves us broadly on track to hit our forecast for 10% inflation by December 2021 but with risks to the upside. Meanwhile, Irish CPI inflation was 3.7% in September, its sharpest pace since 2008, with private rents rising 2% on the month – now 3% above pre-pandemic levels.