Will inflation decrease in the next period?

Intensification of inflationary pressures in recent months cannot be persistent because there has not been a strong increase in the velocity of money circulation. It was rather an inflationary surge, determined by the confluence of factors from the supply side, the demand side, and geopolitical nature.

Macroeconomic forecasts indicate prospects of a pronounced moderation for the annual dynamics of consumer prices in 2023 and 2024, against the backdrop of the dissipation of the impact of shocks in the supply sphere, adjustments in the economy, and monetary policy decisions in recent quarters. 👍

Bloomberg indicates for the USA the slowdown in the annual dynamics of consumer prices from 8% in 2022 to 4% in 2023 and 2.5% in 2024.

In the Euro Area consumer prices could rise with average annual rates slowing from 8.4% in 2022 to 6% in 2023, and 2.3% in 2024.

In the revised scenario on the Romanian economy, consumer prices (on the EU harmonized index) could increase with average annual rates moderated from 12% in 2022, to 8.5% in 2023, and 4.3% in 2024. The year has good signs. 😊

Inflation vs. monetary policy interest rate in Romania

You can find more details about all of the above in our article on the Blog: „Inflation now, a spike”.  🙂