Planning Bureau expects inflation to rise further: will the pivot index be exceeded twice next year?

The Federal Planning Bureau has revised its inflation forecasts upward, predicting an average inflation rate of 4.4% for next year. The index used for calculating government wages and benefits is expected to be exceeded earlier than previously anticipated, with projections indicating breaches in November this year and February 2027, along with an additional breach in December 2027. This suggests that government benefits will increase sooner than expected, putting additional pressure on the budget.