Exchange rate responsible for price increases

Economic analyst Saša Đogović said that the decrease in the domestic currency’s value is expected to cause an increase in prices on the Serbian market.

Izvor: Beta

Sunday, 30.05.2010.

11:29

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Economic analyst Sasa Djogovic said that the decrease in the domestic currency’s value is expected to cause an increase in prices on the Serbian market. He also said that the projected inflation rate for the end of the year could be overshot as well. Exchange rate responsible for price increases Djogovic said that according to market research, inflations rates could increase in May and June. “The decrease in value of the domestic currency increases inflation risks and there is a danger that we will overshoot the projected inflation rate of six percent for the end of the year,” Djogovic said. He said that the state generates the development of inflation tensions through excessive public spending and bad economic policies. “In order for the state budget to be filled, the state has increase excises and approved an increase in prices for electricity and telephone services,” Djogovic said. He said that inflation is expected in June because fuel prices have also gone up, which will have a direct effect on the prices of other products and services. Djogovic said that prices in the fall will depend on the coming agricultural harvest.

Exchange rate responsible for price increases

Đogović said that according to market research, inflations rates could increase in May and June.

“The decrease in value of the domestic currency increases inflation risks and there is a danger that we will overshoot the projected inflation rate of six percent for the end of the year,” Đogović said.

He said that the state generates the development of inflation tensions through excessive public spending and bad economic policies.

“In order for the state budget to be filled, the state has increase excises and approved an increase in prices for electricity and telephone services,” Đogović said.

He said that inflation is expected in June because fuel prices have also gone up, which will have a direct effect on the prices of other products and services.

Đogović said that prices in the fall will depend on the coming agricultural harvest.

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