Almost a quarter of recent private sector pay deals have been worth more than 3% according to a new survey by the respected journal Industrial Relations News (IRN). But most were worth less than 4%, which is well below the current 6.7% inflation rate.

The IRN survey also shows significant differences across sectors, with relatively high settlements in banking.

A report by the Central Bank of Ireland, published earlier this week, said that wage growth “consistent with economic fundamentals” was welcome, and noted that inflation meant real incomes would fall this year.

It warned that pay increases that aren’t linked to productivity growth could end up fuelling inflation.

Speaking at the Siptu conference last week, Fórsa general secretary Kevin Callinan said unions had been quick to respond to the soaring cost of living and its impact on living standards.

“In the face of high and persistent inflation, ICTU’s Private Sector Committee has twice upgraded its advice on private sector pay aspirations since the end of 2021. And I think that they will have to do so again.

“We are operating in a fast-changing situation in this regard. None of us can predict the global economic reverberations of the war in Ukraine with certainty. What is certain is that we will all feel the impact, certainly in terms of further increases in the cost of essentials like food and fuel, and possibly in the form of a new and potentially deep recession,” he said.