Bloomberg: Serbia caps prices of basic groceries while inflation soars

In an article about the Serbian government decided to cap the prices of basic groceries like flour, pork and cooking oil over the course of 60 days, Bloomberg says that despite the measure, inflation in Serbia is at its highest rate in eight years.

“Global food prices are at a decade high following bad weather, labour shortages and logistical bottlenecks. That’s piling pressure on consumers and governments, with countries from Russia to Turkey introducing protectionist measures, calling for price cuts or boosting investment in local food production to secure supplies. Rabobank said this week that disruptions and prices should ease next year, but only slightly,” Bloomberg reports and continues:

“Surging inflation is denting nominal wage increases and threatens to cut disposable income. Serbia is expected to hold parliamentary and presidential elections in early April.  

Serbia is trying to protect its citizens from an “excessive impact on their disposable income,” Mate Jelic, a senior macroeconomic analyst at Erste Group said. “Still, such measures are only sustainable in the short term.”

President Aleksandar Vucic’s party is still topping polls, but high food prices are adding to pressures he’s facing from simmering discontent over democratic standards, media freedoms and environmental protection. “

(Nova, 02.12.2021)


This post is also available in: Italiano

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