You are probably a bit early on Ireland , gov debt to GDP is still lower then most EU countries but it depends on how bad the Bank write downs are which the gov have decided to backstop. Given that the Euro is like a synthetic gold standard in relative terms here, pay cuts are being forced on public sector workers , inflation here officially went negative here last month and consumption is falling , VAT , Stamp duty etc. so it feels deflationary , anyone with a big mortgage would be feeling nervous now.

I cant see a big ramp up in inflation in the near term unless you are in a country with a very weak currency