Year-on-year inflation in Serbia in July was 12.5 percent, while prices in comparison to June decreased by an average of 0.1 percent, the Republic Institute of Statistics announced today.
Compared to December 2022, prices have increased by six percent on average. Food and non-alcoholic beverages (1.4 percent) and clothing and footwear (0.2 percent) became cheaper in July.
Prices went up for services in recreation and culture (3.4 percent), alcoholic beverages and tobacco (1.7 percent), equipment for the apartment and current maintenance (0.9 percent), restaurant and hotel services (0.7 percent), health (0.5 percent), transport (0.2 percent) and communications (0.1 percent).
Slower growth of processed food and energy prices contributed to the slowdown in inflation
The slowdown in inflation in Serbia in July to 12.5 percent year-on-year is largely the result of the slowdown in the growth of processed food and energy prices, as well as prices within the base inflation (consumer price index excluding food, energy, alcohol and cigarettes), she announced today National Bank of Serbia (NBS).
According to the data of the Republic Institute of Statistics, there was no monthly increase in prices in July, for the first time since September 2020, as consumer prices were reduced by 0.1 percent on average, driven by lower prices of vegetables and, to a lesser extent, certain basic foodstuffs (oil, bread, meat).
The prices of food and non-alcoholic beverages decreased on a monthly basis for the first time since the beginning of the year and were on average lower by 1.4 percent compared to June. Within this, the prices of unprocessed food in July were reduced by 4.4 percent, primarily driven by lower prices of fresh vegetables and fresh meat.
Reduced cost pressures
The prices in the processed food group in July increased slightly, by 0.2 percent, which represents a significant slowdown compared to the average results from previous months, the NBS stated, adding that the continued slowdown in the growth dynamics of processed food prices indicates that the cost pressures on the market of basic foodstuffs, as indicated by the price movement of food producers, which decreased by 0.5 percent from the beginning of the year to the end of July.
Under the influence of lower prices of solid fuels on a monthly basis, the prices of energy products decreased by 0.1 percent, while the prices of oil derivatives, on average, remained almost unchanged compared to June.
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