Year-on-year inflation in Serbia slowed to 3.8 percent in June, according to data from the Republic Institute of Statistics, as announced by the National Bank of Serbia (NBS). This decline is primarily attributed to changes in food and petroleum product prices.
Key factors contributing to inflation decline
Food Prices:
- Processed food: Increased by 0.4 percent, consistent with monthly trends since the beginning of the year.
- Fresh vegetables and meat: Lower prices in these categories offset the increase in processed food prices, resulting in a neutral overall contribution of food prices to inflation both on a monthly and annual basis.
Petroleum products:
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- Oil derivatives: Decreased by 2.6 percent, leading to a 1.0 percent reduction in energy product prices on a monthly level.
- Energy prices: Year-on-year growth in energy prices was 6.2 percent in June.
Core inflation trends
- Monthly increase: Core inflation rose by 0.5 percent in June, driven by seasonal price increases in tourist packages, catering services, and rents.
- Year-on-year: Core inflation remained steady at 5.1 percent, a level it has maintained for the past few months.
Future outlook
The central bank predicts that year-on-year inflation will continue to stay within the target range of 3.0 percent, plus or minus 1.5 percent, ensuring a stable economic environment.
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