Inflation forecast: 2.5% for 2021 and 2022

STATEC is revising its inflation forecast sharply upwards. This is the result of stronger observed inflation and expected increases in the coming months. Core inflation is expected to be above 2% in 2022, and energy prices are expected to provide a further significant boost to inflation following the recent surge in wholesale market prices. As uncertainty about energy price developments remains high, STATEC assesses different scenarios and expects headline inflation to be between 2 and 3% in 2022.