The Central Bank says there should be "temporary and targeted" measures to ease the impact of inflation on poorer households.
It's expecting the average inflation rate to be 6.5% for the rest of the year - higher than previous estimates.
That'll drop to just under 3% next year - but it's "highly dependent" on what happens with the war in Ukraine.
The overall economy is also expected to grow at a slower rate this year - but economist Jim Power doesn't think a recession is likely.
"The global economy is still showing quite a strong level of economic activity. And there was a strong rebound going on from the post COVID situation.
"But have no doubt about it, the longer this war goes on, and the more it disrupts the supply chains around the world, the greater the risk of a significant slowdown in global economic activity."
