In an economic forecast published on Friday, the statistics body wrote that it expected 2% inflation growth for 2020 and 2021.

“This acceleration essentially reverts from increased prices for petrol products. These forecasts take into account the introduction of free public transport from 1 March 2020 (a slight lowering impact) and the new increase in fuel excise expected in the coming months,” the report read.

Statec forecast a jump in Brent oil prices compared to low rates at the start of February ($54/barrel), predicting a maximum rise to $68.20 in 2020 and $81 in 2021.

It based its indexation prediction on the mechanical impact in a high scenario (the price of Brent rises $1 more per month) and low scenario (it falls -$1 per month).

Indexation is a mechanism used to maintain public purchasing power after inflation. The last indexation adjustment was imposed on 1 January 2020.