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Inflation forecast: 1.8% in 2017 and 1.6 % in 2018
02-08-2017 | STATEC

After a modest 0.3% in 2016, the rise in headline inflation in the beginning of 2017 stems partly from a strong positive impact of oil prices. Strengthening of underlying inflation has been more gradual and should, for the remainder of 2017 and in 2018, still be supported by favourable economic fundamentals. After only 0.9% in 2016, underlying inflation is expected to rise to 1.6% in 2017 - stronger than previously forecasted – and 1.8% in 2018. Following the recent decline in oil prices, the expected rate for headline inflation in 2018 has been lowered to 1.6%. The next automatic indexation of wages, salaries and pensions is still forecasted for the second or the third quarter of 2018.