NBS: Inflation trimmed to target by October

BELGRADE -- Central bank (NBS) Governor Jorgovanka Tabaković expects the year-on-year inflation will be "trimmed to the targeted level of four percent," by October.

(Beta, file)
(Beta, file)

The figure has a tolerance band of plus or minus 1.5 percentage points.

“The restrictive measures of the monetary policy that the NBS has been pursuing since mid-2012 resulted in a downward trend of the year-on-year inflation. The biggest increase was recorded in January, when the year-on-year inflation stood at 12.8 percent,” Tabaković said for the monthly magazine New Economy.

Low monthly inflation rates in the last six months, 0.24 percent on average, confirm the NBS projections that the year-on-year inflation will be reduced to the target level by October, she said.

The governor underlines that the restrictive measures of the monetary policy that have been taken up to this point will have its full effect on inflation during this year.

“We expect the state to do its part of the job in terms of fiscal consolidation. I believe that the government will find a way to implement the measures that will contribute to keeping the public finances sustainable,” Tabaković said.