Deflation 0.9 percent in Serbia in July

BELGRADE - Retail prices of goods and services decreased by 0.9 percent on average in July in relation to June. Year-on-year inflation was 8.6 percent, the state statistical office said and in the first six months of this year, inflation, measured by the consumer price index, totaled two percent. Deflation 0.9 percent in Serbia in July Decrease of prices was noted in the groups food and non-alcoholic beverages (4.2 percent) and clothing and footwear (0.4 percent). The major price increase was noted for recreation and culture (5.9 percent), alcoholic beverages and tobacco (3.0 percent), housing, water, electricity, gas and other fuels (0.5 percent) and communication (0.3 percent). Prices of other products and services mostly remained unchanged. The consumer price index is defined as a measure of average change of retail prices of goods and services used for personal consumption. NBS expects further drop of inflation rate Consumer prices dropped by 0.9 percent in July, mostly as the result of the usual seasonal drop of vegetable prices and the National Bank of Serbia assessed that the inter-annual inflation in the next months would be in a sharp drop and could return to the limits of allowed deviation from the target rate by October. The estimate also takes into account this month's electricity price and gas hikes and announced adjustments in government-regulated prices, the central bank released. According to NBS expectations, the inflation will remain within the limits of the allowed deviation from the target rate of 4.5 percent plus or minus 1.5 percent after October. The factors that would contribute to this end include the implemented measures of monetary policy, good agricultural season and low aggregate demand. Serbia recorded a 0.9 percent deflation in July and the inter-annual inflation accelerated its drop and totalled 8.6 percent. /Tanjug, file/ Tanjug

Deflation 0.9 percent in Serbia in July

Decrease of prices was noted in the groups food and non-alcoholic beverages (4.2 percent) and clothing and footwear (0.4 percent).

The major price increase was noted for recreation and culture (5.9 percent), alcoholic beverages and tobacco (3.0 percent), housing, water, electricity, gas and other fuels (0.5 percent) and communication (0.3 percent).

Prices of other products and services mostly remained unchanged.

The consumer price index is defined as a measure of average change of retail prices of goods and services used for personal consumption.

NBS expects further drop of inflation rate

Consumer prices dropped by 0.9 percent in July, mostly as the result of the usual seasonal drop of vegetable prices and the National Bank of Serbia assessed that the inter-annual inflation in the next months would be in a sharp drop and could return to the limits of allowed deviation from the target rate by October.

The estimate also takes into account this month's electricity price and gas hikes and announced adjustments in government-regulated prices, the central bank released.

According to NBS expectations, the inflation will remain within the limits of the allowed deviation from the target rate of 4.5 percent plus or minus 1.5 percent after October.

The factors that would contribute to this end include the implemented measures of monetary policy, good agricultural season and low aggregate demand.

Serbia recorded a 0.9 percent deflation in July and the inter-annual inflation accelerated its drop and totalled 8.6 percent.