Financial sector's one-year ahead inflation expectations decrease

BELGRADE - According to a May Ninamedia survey, one-year ahead inflation expectations of the Serbian financial sector decreased from 3.9 pct in April to 3.5 pct in May, continuing to move within the National Bank of Serbia (NBS) target band.

"According to the Bloomberg survey in June, inflation expectations of the financial sector also equalled 3.5 pct, unchanged from May," the NBS said in a statement.

"Short-term inflation expectations of the corporate sector, according to Ninamedia, stayed unchanged for a sixth month in a row, at 5.0 pct, this being also their average value in the previous year.

Medium-term inflation expectations of the financial sector in the May survey did not change from the month before, measuring 3.5 pct and 3.3 pct for two and three years ahead, respectively. The Ninamedia survey indicates that medium-term corporate expectations continued moving within the 4.0-5.0 pct range – equalling 5.0 pct for two years and 4.3 pct for three years ahead," it also said.