Sharp fall in inflation next year

Inflation will return to the projected values in 2024, says the National Bank of Serbia.  

Two-thirds of the inflation rate in Serbia is the result of the spillover of global prices of energy and food to our market, and next year, inflation is expected to decrease, said the Vice Governor of the National Bank of Serbia (NBS), Ana Ivković, at the 22nd Belgrade Economic Forum.

“We expect a rapid decline in inflation in the coming years and a return to the expected values in 2024,” she noted.

She added that inflation started growing even before the war in Ukraine and after the pandemic when there was a sudden increase in global demand and supply couldn’t keep up with it. The war in Ukraine just exacerbated the situation.

“Most of the central banks estimated that the crisis was short-term, but after the war in Ukraine started, the crisis turned into a long-term one,” the vice governor pointed out.

She underlined that the increase in the price of energy and food in the world by between 65 and 70 percent has also negatively affected inflation in Serbia.

A Faculty of Economics professor, Dragan Đuričin, has said that the cause of the crisis lies in the structural imbalance of the liberal capitalism model that was introduced in the first decades of the last century.

“This led to the disruption of the macroeconomic foundations of the system, which led to a crisis of supply and demand, experimental economic policies and a huge money emission,” Đuričin added.

He thinks that the way out of the problem lies in the circular economy and other measures that take into account the principles of nature, and not those created by the elites.

(Biznis i Finansije, 07.12.2022)

This post is also available in: Italiano

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