The Economic and Social Research Institute says inflation is coming down a lot slower than originally expected.
The think tank now believes Consumer Price Inflation will average this year at 6 percent, before slowing to 3.2 percent next year.
In its latest quarterly bulletin, the ESRI says inflation is now broadening and becoming more ingrained across the economy with more so-called "second round effects".
Kieran McQuinn, who is a Research Professor with the ESRI, says they have revised up their rate of inflation compared to what it was in the summer:
"You know, inflation is falling, but it's falling at a slightly slower pace. And I think what most people would have expected so this year, we still expect a rate of inflation somewhere in the region of 6%, which is very, very high, I suppose, by historical standards, but, you know, it's coming down from where it was last year, for example, and next year, we expect inflation to be just over 3%. So there's no doubt that the rate of inflation is coming down, but not quite as fast as people would have thought".
