C. bank: Inflation 7.5 pct in 2009

Inflation in Serbia in 2009 will be around 7.5 percent, it was stated at the National Bank of Serbia (NBS)presentation of the November inflation report.

Izvor: Tanjug

Friday, 20.11.2009.

13:46

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Inflation in Serbia in 2009 will be around 7.5 percent, it was stated at the National Bank of Serbia (NBS)presentation of the November inflation report. It is expected that in the fourth quarter of this year, the prices will rise by about 1.2 percent, primarily due to the expected increase of prices of agricultural products by 9.4 percent, NBS Vice-Governor Bojan Markovic said. C. bank: Inflation 7.5 pct in 2009 According to him, the biggest risk to achieving the projected inflation is the rise of prices of oil derivatives and a possible early increase of cigarette prices, which was planned for the beginning of next year. Markovic pointed out that the crucial medium-term disinflationary factor is low domestic demand, since the country's investment and economic activity is low, whereas the salaries in the public sector and pensions are frozen. The dinar (RSD) exchange rate is stable despite the reduction of the reference interest rate and the increase of the dinar liquidity, which was contributed to by the successful negotiations with the IMF, and a partial recovery of economic activity, Markovic said.

C. bank: Inflation 7.5 pct in 2009

According to him, the biggest risk to achieving the projected inflation is the rise of prices of oil derivatives and a possible early increase of cigarette prices, which was planned for the beginning of next year.

Marković pointed out that the crucial medium-term disinflationary factor is low domestic demand, since the country's investment and economic activity is low, whereas the salaries in the public sector and pensions are frozen.

The dinar (RSD) exchange rate is stable despite the reduction of the reference interest rate and the increase of the dinar liquidity, which was contributed to by the successful negotiations with the IMF, and a partial recovery of economic activity, Markovic said.

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