Period of high inflation is behind us

The period of high inflation is behind us, the National Bank of Serbia said at a press conference on the May inflation report.

The NBS expects that year-on-year inflation will have a downward trajectory from the second quarter onwards, and come the year-end, it will be twice lower than March inflation. A return to the targeted inflation is expected in mid-2024.

“First, the April data on inflation of 15.1 percent confirms that the peak of inflation is behind us and that the previously implemented monetary policy measures are yielding results. The peak of not only overall but also base inflation is behind us,” said NBS Vice-Governor Željko Jović.

Global cost pressures are easing, but the central banks’ fight with inflation is still not over. However, the chances that the world will enter a recession are much lower now.

Positive investment return

Jović also said that a positive investment return is expected.

To remind, the April inflation in Serbia was 0.7 percent, since the prices of personal consumer products and services increased by that much in April 2023 compared to March last year. Relative to the same month of the previous year, consumer prices in April increased by 15.1 percent, and compared to December 2022 by 4.4 percent.

Looking at the main groups of products and services, in April and compared to March, the price of clothing and footwear increased by 2.6 percent, and prices in the health care services increased went up 1.5 percent. Furniture and household devices prices went up by 1.2 percent, alcoholic beverages and tobacco by 0.9 percent, food and non-alcoholic beverages, as well as recreation and culture by 0.7 percent each.

Costs of telecommunications went up by 0.6 percent, restaurant and hotel services by 0.5 percent, transportation by 0.2 percent and education by 0.1 percent. The drop in prices was recorded in the housing, water, electricity and gas group and amounted to 0.2 percent.

(Biznis i Finansije, 18.05.2023)

This post is also available in: Italiano

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