Oil prices rise by over 11%

The Middle East conflict pushed up oil prices by more than 11 per cent yesterday, with crude reaching its highest level since 1990, before falling slightly. The rise spells bad news for the Republic's inflation rate and for mortgage holders. Some analysts are forecasting the State's inflation rate average could rise to more than 7 per cent. The European Central Bank is now expected to raise interest rates, possibly next week. This would lead to further rises in Irish rates.