Full coverage: Inflation

Property development flourishes when there's a big gap between risk-free returns and property yields. Risk free returns are shooting up. How bad is this for developers?

Last summer, Irish exporters thought they were on the tail end of supply chain challenges. A year on, not much has changed and they're still navigating freight delays and shipping headaches – with inflation added on.

Some of those criticising the Croí Cónaithe scheme have been consistent in their suspicion developers are making large profits from building homes. The problem with this theory is that there is effectively no evidence for it.

Although inflation data and commodity markets point to less severe price hikes than initially feared, central banks are now on a tightening trajectory and equity markets are predicting a textbook recession.

The fall in money value, the destruction of purchasing power or the rise in prices – choose your description – is fundamentally a monetary phenomenon. To understand it, listen to Charlie Munger.

Where will the price spiral leave Ireland, Europe and the US? Also last week, we teased out the issues at An Bord Pleanála, followed the examinerships of Natterjack and Premier Periclase, and interviewed Revenue chairman Niall Cody.

We can often mistake inflation for what is, in reality, profiteering. And with the ERSI forecasting a 8.5% spike in inflation, the government must tackle those who use it as an opportunity to gouge on prices.

Analysis by The Currency shows net government supports are absorbing around half of the recent energy price increases targeted. Now is the time to get more strategic with counter-inflation spending.

With the pandemic receding, Declan Black, managing partner of Mason Hayes & Curran, believes the biggest threat is now the societal risk posed by inflation. He also discusses how Covid impacted the 540-person firm and changed its future.

Inflation represents yet another segregation in our economy, between those who can cope with rising prices and those who cannot. The government knows this too but is either unwilling or unable to end this segregation.