According to the National Bank of Serbia, inflation expectations in the financial sector for the year ahead remained steady at 3.9 percent in May, unchanged from April. However, the latest June survey reveals a decline in these expectations to 3.2 percent, aligning closer to the central target value. Concurrently, economic expectations for the coming year have held steady at 5 percent for the third consecutive month.
Medium-term projections from the financial sector indicate expectations of 3.2 percent inflation two years ahead, down from 3.3 percent in April, and stable at 3 percent for three years ahead compared to the previous month. The NBS highlights that business expectations show a reduction in inflation forecasts from 5 percent in April to 4.5 percent in May for the two-year horizon, marking a return to within the central bank’s target range.
Looking further ahead, expectations for inflation three years out have risen to 4 percent, up from 3.8 percent recorded in April. Overall, the survey results indicate a consensus across both the financial sector and broader economy for continued easing of inflationary pressures in the foreseeable future, according to the NBS.
