According to the economic outlook update report, the organisation said that as energy and food prices slow down, as well as labour demand, inflation will fall by 5.5% this year ( 5.7% in the last update) to 3.3% in 2024 and 2.4% in 2025, close to the 2% target that the European Central Bank wants to achieve.

The International Monetary Fund's forecasts point, in turn, to a reduction in the inflation rate to 5.3% in 2023 and to 3.4% in 2024.

The Bank of Portugal (BdP) revised inflation slightly upward for this year and next to 5.4% and 3.6%, mainly due to energy prices, but expects the rate to continue to reduce.

“The progressive elimination of energy and inflation support and high nominal GDP [Gross Domestic Product] growth will contribute to maintaining budget surpluses and reducing public debt to around 98% of GDP in 2025 (Maastricht definition)”, highlighted the OECD in the report.

“Growth in employment or wages higher than expected would support consumption, but would also fuel inflation”, he warned, and “on the other hand, PRR [Recovery and Resilience Plan] expenses could be implemented more slowly than projected, which would imply lower growth and inflation”, according to the organisation.