Inflation forecasts: 4.4% for 2022 and 1.3% for 2023

The recent increase in inflationary pressures has led STATEC to significantly revise its forecast upwards for the year as a whole. On the energy side, oil prices have continued to rise and tensions over gas and electricity are proving more persistent. The strength and broad-based nature of the increases in core inflation also surprised. Overall inflation would slow by 2023 as the bullish impact of energy fades and core inflation returns to around 2%. The next index tranche is already expected to be implemented in Q2 2022.