Tabakovic: Inflation to return to within 3±1.5 pct range in mid-2024

BELGRADE - Serbian inflation will continue to slow down this year and the National Bank of Serbia (NBS) expects it to return to within the 3±1.5 pct target range in mid-2024 and approach the target midpoint late this year, NBS Governor Jorgovanka Tabakovic said on Wednesday.

At a presentation of the February 2024 inflation report, Tabakovic said the new inflation projection was slightly lower than the November one, mostly due to monetary tightening and softer global cost-push pressures.

She said January and February inflation was expected to be 6.4 pct and 5.5 pct, respectively.

"We expect accelerated GDP growth of 3-4 pct this year and 4-5 pct for the next two years," Tabakovic said, adding that personal consumption and government as well as private investments would be the most significant factors in that growth.

She also said global inflation was declining faster than expected and that key policy rates were expected to decline as well.