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Inflation forecasts: 0.6% for 2020 and 1.6% for 2021
06-05-2020 | STATEC


STATEC is revising its inflation forecasts downwards against the backdrop of the collapse in oil prices and the economic downturn, which are the consequences of the Covid-19 pandemic and containment measures. Even if in the short term and for certain sectors, supply difficulties may exert upward pressure on prices (this is already the case in the food sector), the moderating effect of demand should dominate over the forecast horizon.


Still close to 2% at the beginning of the year, inflation has plunged considerably since then, reaching only 0.6% in April. This sharp decline stems from the collapse of oil prices from over USD 60 in early February to less than USD 20/barrel in April.