11:24 14 September 2019
BIEC: WPI falls for fifth time in a row in September
The Future Inflation Index (WPI), which forecasts changes in the prices of consumer goods and services several months in advance, fell again by 0.8 points in September 2019, which marked its fifth consecutive decline, the Investment and Economic Cycles Office (BIEC) said.
“[The index] reflects the short-term and local nature of the factors responsible for the current rise in inflation measured by the consumer price index (CPI). However, it cannot be ruled out that the long-term effects of these factors, such as the increase in food prices, will be transferred to other groups of goods and services and thus will wind the inflationary spiral,” BIEC assessed.
According to BIEC, such a scenario is all the more likely the more the stimulation of internal demand by increasing social benefits, raising minimum wages and other incomes not related to work and increasing its productivity is present in economic policy.
(PAP)
