Inflation expected to reach 5.5% in 2023 (BAM)

by times news cr

2024-08-05 21:54:39

“After reaching 6.6% in 2022, its highest since 1992, inflation is expected to remain at high levels in the medium term. It would come out in 2023 at 5.5% on average and its underlying component would be at 6.2%, an upward revision of 2 percentage points compared to the forecast of last December, mainly due to the surge in prices of certain food products included in it,” the Central Bank said in a statement published at the end of its first quarterly meeting for the year 2023.

These projections assume that the shocks causing this increase would gradually dissipate in the second half of the year following the various measures taken by the Government in this regard, indicates the same source, noting that in 2024, and under the assumption that both internal and external pressures would continue to ease, the fundamental price trend would be 2.3%.

However, BAM adds, the scheduled start of the decompensation of prices of subsidized products should keep inflation overall at a high level, at 3.9%.

Despite a relative easing of external pressures, recent data show that inflation continues to accelerate, particularly as a result of internal supply shocks on certain food products, notes the Council, taking note, in this regard, of the measures put in place by the Government to improve the supply of these products and ensure the proper functioning of their markets.

2024-08-05 21:54:39

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