Inflation and Health Index: Navigating Through Uncertain Economic Times

This year, the Planning Bureau predicts that inflation will be 3.1 percent, slightly lower than the previous forecast of 3.3 percent made in April last year. Inflation in 2021 was at 4.06 percent on an annual basis and reached a high of 9.59 percent in 2022. Looking forward, the forecast for next year is an average annual inflation rate of 1.9 percent.

In addition to inflation, the health index is also expected to be a key factor for indexation of wages, social benefits, and rental prices. This year, the health index is predicted to be at 3.1 percent and is projected to drop to 2 percent by 2025.

The health index was exceeded in April last year leading to adjustments of social benefits in May and government employees’ wages in June by 2 percent to account for the increased cost of living.

The Planning Bureau anticipates that the next exceedance of the central index will happen in February 2025 based on current projections.

Overall, while inflation has decreased slightly from previous years, it still remains a major concern for many individuals and businesses as they navigate through these uncertain economic times. The health index also plays a crucial role in determining wage increases and other important factors that impact our daily lives.