Serbian y-o-y inflation down to 2.4 pct in January - central bank

BELGRADE - Serbian y-o-y inflation slowed down in January relative to December and amounted to 2.4 pct, the National Bank of Serbia (NBS) said on Friday, quoting figures released by the national statistical office.

"At the monthly level, consumer prices went up by 0.3 pct, led by services (1.3 pct) and the seasonal hike in vegetable prices (5.7 pct), while lower petroleum product prices worked in the opposite direction (-2.6 pct).

Food and non-alcoholic beverage prices recorded a monthly increase of 0.5 pct, influenced by the aforementioned rise in vegetable prices. Prices of other food categories, on average, remained unchanged or decreased compared to December. Relative to January last year, food and non-alcoholic beverage prices declined on average by 1.0 pct.

Energy prices receded by 0.7 pct at the monthly level, led by the fall in petroleum product prices. Y-o-y, energy price growth slackened to 2.9 pct in January," the central bank said in a statement.

"The monthly increase in prices within core inflation (0.6 pct) was entirely driven by service prices, due to adjustments in utility service prices, as well as the seasonal rise in prices of tourist package arrangements. On the other hand, as a result of seasonal discounts on footwear and clothing, prices of goods within core inflation recorded a monthly decline. On a y-o-y basis, core inflation was slightly higher compared to December and amounted to 4.1 pct," it said.

"Under the new projection, y-o-y inflation is expected to continue moving within the target band of 3±1.5 pct this year, as well as in the medium term. By September, it is expected to be around the target midpoint, after which – due to the low base effect from the previous year, primarily in food prices following the entry into force of the Decree on Special Conditions for Trade in Certain Goods, which limited trade margins to 20 pct – it is projected to amount to around 4 pct by the end of this year," the NBS also said.