According to the latest forecasts from the Planning Bureau, inflation is expected to be 3.1 percent this year. This is slightly lower than the previous forecast in April, which had predicted an average annual inflation rate of 3.3 percent. Inflation stood at 9.59 percent on an annual basis in 2022 and is projected to be 1.9 percent next year.

Looking ahead, the forecast for next year is an average annual inflation rate of 1.9 percent. Additionally, the health index, which is used for indexing wages, social benefits, and rental prices, is also expected to be 3.1 percent this year and 2.0 percent in 2025. The health index was 4.33 percent last year and exceeded the key index for government wages and social benefits in April, leading to adjustments of social benefits in May and government employees’ wages in June by 2 percent to account for increased cost of living. The Planning Bureau anticipates the next exceedance of the central index in February 2025 based on current projections.