Serbian financial, business sectors expect 3-5 pct one-year ahead inflation

BELGRADE - The results of an August survey indicate that short- and medium-term inflation expectations of the Serbian financial sector continued moving within the target band of 3±1.5 pct, says the National Bank of Serbia (NBS).

In a statement, the central bank said that, according to a Ninamedia survey, "one-year ahead inflation expectations of the financial sector inched up from the previous survey, to 3.5 pct, while the Bloomberg survey conducted in September points to their convergence to the target midpoint (3.0 pct)."

"One-year ahead expectations of the corporate sector, according to Ninamedia, equalled 5.0 pct.

Inflation expectations of the financial sector for two years ahead rose from 3.0 pct in July to 3.3 pct in August, while those for three years ahead remained unchanged, suggesting that the financial sector expects medium-term inflation to stabilise around the NBS target midpoint," it said.

"Inflation expectations of the corporate sector for two and three years ahead decreased in August to 4.0 pct and 4.6 pct, respectively, and are below the sector’s short-term expectations."

The survey results show that both the financial and the corporate sector "expect inflationary pressures to ease further in the period ahead," it also said.