Inflation to hit upper end of target range

PM Mirko Cvetkovic said Monday that Serbia's year-end inflation will hit or slightly surpass eight percent, the upper limit of the target inflation range. Addressing a forum of local businessmen in Vojvodina, Cvetkovic pointed out that even if inflation goes slightly over eight percent, it will not be enough to threaten macroeconomic stability. Inflation to hit upper end of target range The prime minister reminded that inflation was significantly lower in the first half of the year, but as the GDP rose in the second half of the year, the inflation grew along with it. According to him, the latest data shows that domestic demand is bouncing back, as seen in increased retail volumes, but this is also driving inflation. Cvetkovic pointed out that Serbia has entered the post-crisis period and that the economy is slowly recovering. He reminded that GDP growth was between 0.6 and 0.7 percent in the first quarter of 2010, two percent in the second quarter, and that the growth trend continued in the third quarter. The GDP is still expected to reach 1.5 percent predicted for the year. "There are optimists, and I am one of them, who say that economic growth will be between 1.5 and two percent," Cvetkovic said. Mirko Cvetkovic (Beta)

Inflation to hit upper end of target range

The prime minister reminded that inflation was significantly lower in the first half of the year, but as the GDP rose in the second half of the year, the inflation grew along with it.

According to him, the latest data shows that domestic demand is bouncing back, as seen in increased retail volumes, but this is also driving inflation.

Cvetković pointed out that Serbia has entered the post-crisis period and that the economy is slowly recovering.

He reminded that GDP growth was between 0.6 and 0.7 percent in the first quarter of 2010, two percent in the second quarter, and that the growth trend continued in the third quarter. The GDP is still expected to reach 1.5 percent predicted for the year.

"There are optimists, and I am one of them, who say that economic growth will be between 1.5 and two percent," Cvetković said.