The price of goods and services has risen in the past few months.
A Cabinet sub-committee will meet this week to discuss the rising cost of goods and services.
Inflation rates are at their highest in twenty years, with the likes of rent and fuel skyrocketing.
Minister of State at the Department of Transport, Hildegarde Naughton, says the government's planning to take action.
It comes as rent has skyrocketed in many cities, and fuel prices are reaching highs.
In the first half of 2021, average hourly earnings fell in Ireland by 5.7% (weekly by 2.6%)
Much of this is explained by the return of low wage earners to the labour market.
Annual inflation to Dec 2021 however was 5.5%.
If this continues, real wages could fall significantly. pic.twitter.com/U3CpF1GByW
— Ciarán Nugent (@ciarannugent) January 31, 2022
Minister Naughton says financial forecasts suggest high inflation rates are only temporary.
"The positive is that the ECB and the Federal Reserve are expecting that rise in inflation to be temporary," Naughton said.
"The Cabinet sub-committee is meeting this week to discuss it, and we hope to have decisions made in the very near future."
"What we want to do now; is act fast and put in measures that will help alleviate the cost of living."