Tabakovic: Inflation to continue to move within target tolerance band

BELGRADE - Under a new central projection by the National Bank of Serbia (NBS), Serbian inflation will continue to move within the target tolerance band of 3±1.5 pct over the next two years, NBS Governor Jorgovanka Tabakovic said on Wednesday.

At a presentation of the November 2024 Inflation Report, Tabakovic said y-o-y inflation should gradually slow down and approach the target midpoint at the end of next year.

"The largest contribution to such inflation movements will come from the still restrictive monetary conditions, anchoring of not only medium-term but also of short-term inflation expectations within the target bounds, as well as lower imported inflation and the fall of global oil prices, which is expected based on the futures," she said.

"In addition, we expect real wages to grow in line with productivity, helping core inflation decline and approach the headline rate," she added.

"We kept our 2024 GDP growth projection at 3.8 pct. This year’s GDP growth would probably be even higher were it not for the negative effects of the drought on agricultural output and electricity production in hydropower plants," Tabakovic also said.