Central bank governor: Inflation currently at 13%

BELGRADE Serbian National Bank (NBS) Governor Jorgovanka Tabakovic says the inflation in Serbia has now reached "some 13 percent", and will peak in mid-2013. After that, Tabakovic told Belgrade-based Prva TV, the inflation "will calm down", and predicted that the figure will start to fall in the middle of next year, "provided that the farming season is average". Central bank governor: Inflation currently at 13% The inflation is expected to return to its target level at the end of 2013, according to her. The governor blamed a spell of extremely cold weather in February and then months of drought in the summer for the price hikes, explaining that these circumstances had led to the higher prices of agricultural products. Another reason, she noted, was "the delayed growth of regulated prices due to the election year". The central bank will not be merely an observer of the food prices trend, announced Tabakovic, and added that the NBS would make its recommendations to the government on how it should define its agriculture policy and alleviate the effects of the drought. She urged managing boards of banks in Serbia "to make very serious and thorough final reports" this year, and avoid "lying to themselves that the situation is better than it is", warning at the same time that auditors "will publicly show the situation for what it is". Tabakovic stressed that she on several occasions warned cabinet ministers "not to comment on the situation in the financial sector", because, she said, this was the job of the NBS. The media were also advised to practice "responsible reporting", as the governor asserted that there was "a direct link" between media reports about some banks, and subsequent withdrawals of savings deposits. Jorgovanka Tabakovic (Tanjug) Tanjug Prva TV

Central bank governor: Inflation currently at 13%

The inflation is expected to return to its target level at the end of 2013, according to her.

The governor blamed a spell of extremely cold weather in February and then months of drought in the summer for the price hikes, explaining that these circumstances had led to the higher prices of agricultural products.

Another reason, she noted, was "the delayed growth of regulated prices due to the election year".

The central bank will not be merely an observer of the food prices trend, announced Tabaković, and added that the NBS would make its recommendations to the government on how it should define its agriculture policy and alleviate the effects of the drought.

She urged managing boards of banks in Serbia "to make very serious and thorough final reports" this year, and avoid "lying to themselves that the situation is better than it is", warning at the same time that auditors "will publicly show the situation for what it is".

Tabaković stressed that she on several occasions warned cabinet ministers "not to comment on the situation in the financial sector", because, she said, this was the job of the NBS.

The media were also advised to practice "responsible reporting", as the governor asserted that there was "a direct link" between media reports about some banks, and subsequent withdrawals of savings deposits.