No inflation recorded in Serbia in August

No inflation was recorded in Serbia in August compared to July, but year-to-year prices grew 10.5 percent, the state statistical office announced Monday. In the first eight months of this year, inflation in Serbia totaled 6.2 percent, says the release. No inflation recorded in Serbia in August The greatest price rise in August was recorded in Communications - 5.4 percent, due to an increase in the price of landline phone services, and recreation and culture (2.7 percent) due to higher school textbook prices. The greatest drop was recorded in the prices of food and non-alcoholic beverages - 1.3 percent, due to lower seasonal prices of fruits and vegetables. There were no significant changes in the rices of other products and services. Central bank chief optimistic Inflation in Serbia will continue to drop by the end of the year and it will be in the scope of the target inflation for the first half of 2012, National Bank of Serbia (NBS) Governor Dejan Soskic stated on Monday. Soskic underlined at a press conference in the NBS that the key factors in reduction of inflation will be slower growth in food prices, low demand and base effect at the end of the previous year. The main threats to projected inflation come from the trends in the international financial market, fiscal policy domain and food prices, the governor said. According to Soskic, the future reference interest rate will primarily depend on risk realization in these areas. The governor recalled that following the negative inflation in June and July, no inflation was recorded in August, and owing to stabilization in food prices, inflation at the inter-annual level was down to 10.5 percent in the previous month. The National Bank of Serbia (NBS) reduced the projected rate of GDP growth in 2011 from 3 to 2.5 per cent due to the potential negative effects of the economic crisis, Governor Dejan Soskic also stated on Monday.

No inflation recorded in Serbia in August

The greatest price rise in August was recorded in Communications - 5.4 percent, due to an increase in the price of landline phone services, and recreation and culture (2.7 percent) due to higher school textbook prices.

The greatest drop was recorded in the prices of food and non-alcoholic beverages - 1.3 percent, due to lower seasonal prices of fruits and vegetables.

There were no significant changes in the rices of other products and services.

Central bank chief optimistic

Inflation in Serbia will continue to drop by the end of the year and it will be in the scope of the target inflation for the first half of 2012, National Bank of Serbia (NBS) Governor Dejan Šoškić stated on Monday.

Šoškić underlined at a press conference in the NBS that the key factors in reduction of inflation will be slower growth in food prices, low demand and base effect at the end of the previous year.

The main threats to projected inflation come from the trends in the international financial market, fiscal policy domain and food prices, the governor said.

According to Šoškić, the future reference interest rate will primarily depend on risk realization in these areas.

The governor recalled that following the negative inflation in June and July, no inflation was recorded in August, and owing to stabilization in food prices, inflation at the inter-annual level was down to 10.5 percent in the previous month.

The National Bank of Serbia (NBS) reduced the projected rate of GDP growth in 2011 from 3 to 2.5 per cent due to the potential negative effects of the economic crisis, Governor Dejan Šoškić also stated on Monday.