According to recent forecasts from the Planning Bureau, inflation is predicted to be 3.1 percent this year. This is a slight decrease from the previous forecast in April, which had projected an average annual inflation rate of 3.3 percent. Last year, inflation stood at 4.06 percent on an annual basis and in 2022 it was 9.59 percent. Looking ahead, the forecast for next year is an average annual inflation rate of 1.9 percent.

The health index, which is used for the indexation of wages, social benefits, and rental prices, is also expected to be 3.1 percent this year and 2.0 percent in 2025. The health index last year was 4.33 percent and in 2022 it was 9.25 percent.

In April, the key index for government wages and social benefits was exceeded leading to adjustments of social benefits in May by 2% to account for increased cost of living while government employees’ wages were adjusted by the same amount in June.

The Planning Bureau anticipates that there will be another exceedance of the central index in February 2025 based on current projections.

According to new forecasts from the Planning Bureau, inflation is expected to be slightly lower than previously anticipated with a projection of just over three percent this year.

Looking ahead, we can expect a significant decrease in inflation rates with a forecasted average annual rate of only one point nine percent next year.

The health index is also expected to decline significantly over time with projections showing a decrease down to two percent by