Disposable household incomes in Ireland is expected to fall for the first time since 2012.
New figures from the ESRI shows our petty cash is expected to fall between 2-3% this years as inflation rises further.
In its latest Quarterly Economic Survey, the Institute expects inflation to spike to 8.5% before summer.
It's likely to average out at 6.7% in the months after - the highest annual rate since 1984.
It does however believe there will be a small surplus in the public finances for the first time in three years.
The ESRI is expects there to be a small surplus in the public finances of €1.1 billion this year compared to a previously forecast deficit of €4.8 billion.
The report notes that only 6% of Ireland's petroleum imports come from Russia but it accounts for 67% of our coal imports and 26% of fertilisers.
