Central bank expects "moderate inflation growth"

BELGRADE The National Bank of Serbia (NBS) said on Monday that inflation should increase moderately in the next few months. It will "gradually approach the four percent target inflation on the annual level," the bank said. Central bank expects "moderate inflation growth" The growth of government-regulated prices and one-time effect on price rise on grounds of the forthcoming increase of special VAT rate would contribute to this end, while the low costs in food production and low demand would still exert disinflationary effect. In December, inflation totaled 0.2 percent and in 2013 it reached 2.2 percent, which is below the lower limit of allowed deviation from the target rate of 4 plus or minus 1.5 percent, states the release issued by the central bank. The current from the target rate is for the most part caused by a drop in food prices by 2.5 percent in 2013, as demonstrated by the fact that the inter-annual base inflation rate totaled 4.2 percent in December. The 10.4 percent increase of government-regulated prices gave the most substantial contribution to the inflation rate in 2013 (2.1 percent), the NBS stated. (Tanjug, file) Tanjug

Central bank expects "moderate inflation growth"

The growth of government-regulated prices and one-time effect on price rise on grounds of the forthcoming increase of special VAT rate would contribute to this end, while the low costs in food production and low demand would still exert disinflationary effect.

In December, inflation totaled 0.2 percent and in 2013 it reached 2.2 percent, which is below the lower limit of allowed deviation from the target rate of 4 plus or minus 1.5 percent, states the release issued by the central bank.

The current from the target rate is for the most part caused by a drop in food prices by 2.5 percent in 2013, as demonstrated by the fact that the inter-annual base inflation rate totaled 4.2 percent in December.

The 10.4 percent increase of government-regulated prices gave the most substantial contribution to the inflation rate in 2013 (2.1 percent), the NBS stated.