NBS: Financial sector, businesses expect 6-9 pct one-year ahead inflation

BELGRADE - According to the results of an Ipsos survey, the Serbian financial sector expects inflation to measure 6.7 pct in September 2024, which is the lowest level of one-year ahead expectations in the past year, the National Bank of Serbia (NBS) has said.

"The latest, October Bloomberg survey points to even lower expectations as one-year ahead inflation is anticipated at 6.0 pct.

Having decreased continuously for three months, short-term (one-year ahead) corporate expectations remained in September at the August level (9.0 pct).

Two- and three-year ahead inflation expectations of both financial and corporate sector are lower than short-term expectations. Medium-term expectations of the financial sector for both periods were within NBS target tolerance band for the second month in a row. Inflation expectations for two years ahead fell from 4.5 pct in August to 4.0 pct in September, while expectations for three years ahead stayed unchanged, at 3.5 pct. Medium-term corporate expectations did not change from the previous survey and stood at 6.0 pct for two years ahead and 5.0 pct for three years ahead," the central bank said in a statement.

The two- and three-year ahead expectations indicate that both the financial and the corporate sector expect the waning of inflationary pressures in the coming period and a gradual return of inflation to within the target tolerance band in the medium run, the NBS said.