There has been a lot of difficult news over the last 2 years when it comes to personal finance. But, as it stands, 2024 appears to be one that might offer a good deal of hope.
Inflation
This is falling fast. According to almost every measure, the rate of inflation is coming back down, and this is likely to continue. First off, the squeeze on supplies of food and fuel have eased for many reasons. After the vast global Covid lockdowns, the world ran short on many good and services, there were shortages. And with a rapid increase in demand, prices were impacted. So right now, it does appear that with inflation coming back to relative normality, the impact on family budgets is easing too and this is good news for everyone.
Interest rates
As inflation falls, so too will the pressure on the ECB to cut interest rates. Already, there are signs that the ECB council is split between those on a mission to crush inflation and those seeking to avoid damaging the economy. This is a far cry from where the ECB was a year ago. At some point, with inflation moving quickly in the right direction, the ECB will begin to cut rates. This will mean that mortgage repayments will fall resulting in a little extra cash in the pockets of families.
Wages
The message from the Irish Central Bank is that it expects wages to rise at a decent clip over the next 3 years. This bodes well for working families across the country. This is really important as it should, in theory help people save a little more of their take-home pay every month, a reversal of how things have been for the last 2 years, when it was really difficult to save. This is important from an overall wellbeing perspective as it means that more people have more opportunities to save for emergencies, save towards buying a home and save into a pension for future retirement needs.
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