Ireland's economic growth is set to fall while inflation could hit 8.5% by the summer.
The Economic and Social Research Institute, in its latest Quarterly Economic Survey, says inflation could spike in the coming months before averaging out at 6.7% across the year .
The 6.7% rate would be the highest annual rate since 1984.
The Russian invasion of Ukraine will have a negative impact on global economic activity and is making inflationary pressures even greater.
The Economic and Social Research Institute has reassessed downwards its forecast for growth in the economy this year to 6.2%.
It does however believe there will be a small surplus in the public finances for the first time in three years.
It anticipates that disposable incomes cold fall on average by between 2-3%
The ESRI is also forecasting 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.
