Forward inflation index drops 2.1 points m/m in May

The Future Inflation Index (WPI) decreased by 2.1 points to 88.2 in May 2023, indicating a slowdown in the rate of price growth for consumer goods and services. However, analysts suggest that the decline in inflation will occur at a slower pace in the near future. Despite some recent decreases, consumer inflation expectations remain high and have increased in May. These expectations are likely to lead to higher wage demands among workers, supported by upcoming minimum wage increases and additional pay supplements.

The report warns that these factors could hinder the decline in inflation and result in price increases. While businesses have not yet raised prices, rising labor and maintenance costs may weaken the deflationary trend.

Source: ISBnews