Inflation rate will overshoot nine percent in 2007

Experts say that the inflation rate for 2007 in Serbia will exceed nine percent. Experts of the Center for High Economic Studies (CEVES) in Belgrade, said that in the first 11 months of the year, the inflation rate reached 8.7 percent, adding that the 1.1 percent increase in November was due to a hike in the prices of food products and fuel derivatives. Inflation rate will overshoot nine percent in 2007 CEVES states that food products have increased in price over the last four months by 10.7 percent, which puts Serbia at the top of the region and the rest of Europe. The base inflation, the increase in prices not controlled by the state, was at 0.7 percent in November and reached 4.5 percent for the entire year. CEVES expects the base inflation to be at about 5 percent by the end of the year. Experts also said that the natinal currency decrease in value against the euro will also lead to greater inflation. In the second half of November, the dinar lost 8.6 percent against the euro. If the value does not return to its previous rate within the coming weeks, an even higher inflation rate is expected, CEVES states. The experts also said that the reason for the sharp decrease in the value of the dinar "can probably be tied to the lack of concrete solutions for the Kosovo status situation" and the effects that it may have on Serbia's economy.

Inflation rate will overshoot nine percent in 2007

CEVES states that food products have increased in price over the last four months by 10.7 percent, which puts Serbia at the top of the region and the rest of Europe.

The base inflation, the increase in prices not controlled by the state, was at 0.7 percent in November and reached 4.5 percent for the entire year.

CEVES expects the base inflation to be at about 5 percent by the end of the year.

Experts also said that the natinal currency decrease in value against the euro will also lead to greater inflation.

In the second half of November, the dinar lost 8.6 percent against the euro.

If the value does not return to its previous rate within the coming weeks, an even higher inflation rate is expected, CEVES states.

The experts also said that the reason for the sharp decrease in the value of the dinar "can probably be tied to the lack of concrete solutions for the Kosovo status situation" and the effects that it may have on Serbia's economy.