2008 inflation forecast: 9.4 percent

Radovan Jelašić expects the inflation rate to be about 9.4 percent at the end of the year.

Izvor: Tanjug

Tuesday, 02.09.2008.

15:25

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Radovan Jelasic expects the inflation rate to be about 9.4 percent at the end of the year. The National Bank of Serbia (NBS) governor said that by the end of the year, base inflation (prices that the market regulates) would reach 9.7 percent, and that because of the increase in world crude and food prices, the 2008 inflation target would not be met. 2008 inflation forecast: 9.4 percent Submitting his report on inflation at a press conference, Jelasic said that planned total inflation for 2008 had been 6.5 percent, and the base rate within three to six percent. He said that the target for this year’s base inflation would be achieved by the middle of 2009. Jelasic said that as a result, the Monetary Committee had decided to increase the key interest rate and keep it at its current level of 15.75 percent. The NBS governor said that the inter-annual base inflation rate was 10.3 percent in August, while retail prices had increased 10.5 percent and the inter-annual increase of the consumer price index in July had reached 13.9 percent. In the fourth quarter of this year, Jelasic expects there to be a fall in the base and total inflation rates thanks to the drop in the price of fuel and food on the domestic market. He said that in the coming budget rebalance, something should be done to lower public expenditure in order to lessen the pressure on the inflation rate.

2008 inflation forecast: 9.4 percent

Submitting his report on inflation at a press conference, Jelašić said that planned total inflation for 2008 had been 6.5 percent, and the base rate within three to six percent.

He said that the target for this year’s base inflation would be achieved by the middle of 2009.

Jelašić said that as a result, the Monetary Committee had decided to increase the key interest rate and keep it at its current level of 15.75 percent.

The NBS governor said that the inter-annual base inflation rate was 10.3 percent in August, while retail prices had increased 10.5 percent and the inter-annual increase of the consumer price index in July had reached 13.9 percent.

In the fourth quarter of this year, Jelašić expects there to be a fall in the base and total inflation rates thanks to the drop in the price of fuel and food on the domestic market.

He said that in the coming budget rebalance, something should be done to lower public expenditure in order to lessen the pressure on the inflation rate.

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