Spiralling inflation causes perfect storm

Galway businesses are braced for a long, hard winter if the current economic and political climate remains – as charities predict new record requests for help from families struggling to make ends meet.

Calls for help to the Society of Vincent De Paul’s Galway service have reached 1,440 so far this year, up 21.5% on the same period in 2021 – and with inflation in Ireland expected to hit 6.1 per cent this year, that is likely to rise even further.

Businesses, on the other hand, are still struggling to come to terms with Brexit – and, like the rest of the country, face massive rises in the energy prices on foot of the conflict in Ukraine.

That’s the view of Galway Chamber of Commerce CEO Kenny Deery, who is urging businesses to speak with their banks and the Revenue Commissioners to plan ahead to keep cash flows manageable.

He said there is huge concern in the business community about the ongoing uncertainty that persists and the long-term effects that will have on consumer spending and confidence.

“The threat to the backstop [as a result of Brexit in Northern Ireland], the prolonged nature of the Ukranian crisis which is fuelling the hikes in food, steel, glass and energy costs, are all adding to that uncertainty for business,” he said.

Read our special report in this week’s Connacht Tribune, on sale in shops now – or you can download the digital edition from www.connachttribune.ie. You can also download our Connacht Tribune App from Apple’s App Store or get the Android Version from Google Play.