Serbia’s annual inflation accelerated to 7.9% in August from 6.1% in July, statistics office data showed, while poor agricultural season, an anticipated hike in administered prices and low base effects are expected to lift further consumer prices to around 10% by end-2012, according to official and independent projections. In monthly terms, August consumer prices rose 1.6% after edging up 0.1% in July.
The highest price increase in August in comparison with the previous month was observed in the segments of alcoholic beverages and tobacco (4.6%), transport (2.5%), food and non-alcoholic beverages ( 2.3%), recreation and culture (2%) and education (1.4%). On the other hand, prices of furnishing and household maintenance and of clothing and footwear fell over the observed one-month period.
The finance ministry has said it sees inflation cooling down to 3.5% at the end of 2012 from 7% at end-2011 but the impact this year’s drought has had on food prices, its projection will probably be missed. Inflation peaked at 14.7% in April 2011 as prices growth had been slowing down in annual terms since then until April 2012 when inflation touched a record low of 2.7%.
Source Balkans
