September 30, 2022
The Nazaré da Costa Cabral-led organization projects a “acceleration in the inflation rate, assessed by the HICP, to 7.7%” for inflation in Portugal.
Why such a high value, though? “Inflation in 2022 should mostly reflect the predicted dynamics for food and energy prices on global markets, the depreciation of the euro, and the persistence of supply side limitations.”
According to information provided by the Prime Minister in a recent interview with TVI, the Government has already stated that it is planning for an inflation rate of 7.4% this year. The 7.4% may be comparable to the CFP’s estimated 7.7% because the latter organization uses a standardized method for accounting for inflation. António Costa omitted to say whether the government’s 7.4% is harmonised.
If the inflation news for this year is not excellent, the outlook for 2023 is not particularly promising. The CFP projects inflation of 5.1% in 2023, indicating that prices would rise again the following year.
The agency headed by Nazaré da Costa Cabral projects a 6.7% growth in GDP this year, which is higher than the 6.4% that the government is aiming for. It projects growth, but considerably more restrained growth, of just 1.2% for 2023.
Source: The Portugal News
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