NBS: Inflation to exceed target

Serbia's inflation will exceed the target values in the coming period, Vice Governor of the National Bank of Serbia Bojan Markovic stated on Wednesday. He added that the inflation rate is expected to reduce mid-2011 and return to the target framework of 4.5 percent plus/minus 1.5 percent late in 2011. NBS: Inflation to exceed target At a press conference for presentation of the November inflation report, Markovic underscored that the key factors which will cause growth of inflation in the upcoming period are increase in food prices, weakening of the dinar in the previous period and the announced increase of salaries in the public sector and pensions as of January 1, 2011. If the inflation pressure continues, it is possible that the reference interest rate will increase as well as the monetary policy restrictiveness based on other instruments in the NBS jurisdiction, the vice governor said. Markovic recalled that the inter-annual inflation in October reached 8.9 percent, adding that the acceleration of inflation in the third quarter was triggered by a price increase of industrial and food products and a drop in price of agricultural products which was less than usual at this time of the year. Markovic, right, addresses a news conference (Beta) Inflation to remain 9.5% by end of 2010 Serbia will most probably end this year with the inflation rate of 9.5 percent, say experts. This, however, is an optimistic estimate, says editor of the Belgrade-based Macroeconomic Analysis and Trends Bulletin Stojan Stamenkovic. Bearing in mind market relations and the fact that in November only the central heating price increase will influence the growth of prices with a little more than 0.3 percent, the estimate that we will end this year with the inflation rate of 9.5 percent can even be considered optimistic,” Stamenkovic pointed out. He noted that from the beginning of 2010, the inflation rate of 8.3 percent already in October surpassed not only the annual target of 6 percent, but also the upper limit of 8 percent. During the presentation of the latest issue of the Macroeconomic Analysis and Trends Bulletin published by the Belgrade Institute of Economics and Serbian Chamber of Commerce, Stamenkovic said that the inflation rate growth is based on four factors - rise of food prices, increase of consumption, monopoly and mutual influence of dinar and euro exchange rates. Stamenkovic expressed doubt that the recent rise of reference interest rates to 10.5 percent will put the inflation rate under control.

NBS: Inflation to exceed target

At a press conference for presentation of the November inflation report, Marković underscored that the key factors which will cause growth of inflation in the upcoming period are increase in food prices, weakening of the dinar in the previous period and the announced increase of salaries in the public sector and pensions as of January 1, 2011.

If the inflation pressure continues, it is possible that the reference interest rate will increase as well as the monetary policy restrictiveness based on other instruments in the NBS jurisdiction, the vice governor said.

Marković recalled that the inter-annual inflation in October reached 8.9 percent, adding that the acceleration of inflation in the third quarter was triggered by a price increase of industrial and food products and a drop in price of agricultural products which was less than usual at this time of the year.

Inflation to remain 9.5% by end of 2010

Serbia will most probably end this year with the inflation rate of 9.5 percent, say experts.

This, however, is an optimistic estimate, says editor of the Belgrade-based Macroeconomic Analysis and Trends Bulletin Stojan Stamenković.

Bearing in mind market relations and the fact that in November only the central heating price increase will influence the growth of prices with a little more than 0.3 percent, the estimate that we will end this year with the inflation rate of 9.5 percent can even be considered optimistic,” Stamenković pointed out.

He noted that from the beginning of 2010, the inflation rate of 8.3 percent already in October surpassed not only the annual target of 6 percent, but also the upper limit of 8 percent.

During the presentation of the latest issue of the Macroeconomic Analysis and Trends Bulletin published by the Belgrade Institute of Economics and Serbian Chamber of Commerce, Stamenković said that the inflation rate growth is based on four factors - rise of food prices, increase of consumption, monopoly and mutual influence of dinar and euro exchange rates.

Stamenković expressed doubt that the recent rise of reference interest rates to 10.5 percent will put the inflation rate under control.