NBS: Serbian y-o-y inflation slowed down to 5.6 pct in February

BELGRADE - Quoting figures released by the national statistical office, the National Bank of Serbia (NBS) said on Tuesday Serbian y-o-y inflation had decelerated further, measuring 5.6 pct in February, in line with the its expectations.

"As in recent months, the key contribution to inflation slowdown came from the slackening growth in the prices of food and products and services within core inflation (CPI excluding food, energy, alcohol and cigarettes).

Monthly inflation amounted to 0.6 pct in February, led mainly by the higher petroleum product prices and the regular adjustment of cigarette prices to higher excise tax," the central bank said in a statement.

"The prices of food and non-alcoholic beverages edged up on average by 0.4 pct at the monthly level, with processed food prices rising by 0.5 pct and fresh vegetable prices by 2.9 pct, which is less than usual for the season, while the prices of fresh meat retreated from January levels.

In y-o-y terms, food price growth fell below headline and core inflation - the prices of food and non-alcoholic beverages increased by 4.7 pct y-o-y in February.

Under the impact of the mentioned rise in petroleum product prices, energy prices went up by 1.5 pct at the monthly level. Y-o-y, they increased by 7.7 pct.

The prices of products and services within core inflation edged up in February by 0.2 pct from a month earlier, led by the increase in the prices of some services (utility services, catering). Y-o-y, core inflation softened to 5.2 pct.

Y-o-y inflation is expected to continue down going forward, returning within the target band in mid-2024 and converging to the 3 pct target midpoint at the close of the year.

Such inflation trajectory will be underpinned by the past monetary policy tightening, weakening of global cost-push pressures, slowdown in imported inflation and the anticipated further fall in inflation expectations," it also said.