Serbian financial and corporate sectors expect 4.2-6 pct one-year ahead inflation

BELGRADE - According to a February Ipsos survey, one-year ahead inflation expectations of the Serbian financial sector measured 4.2 pct, down from 4.5 pct anticipated in January, the National Bank of Serbia (NBS) says.

The same level of expectations - 4.2 pct - was also recorded in a February Bloomberg survey, the central bank said in a statement.

"Short-term expectations of the corporate sector also declined – from 6.7 pct in January to 6.0 pct in February.

Two- and three-year ahead inflation expectations of both financial and corporate sectors are lower than short-term expectations.

Medium-term financial sector expectations for both periods were within the NBS target tolerance band: 3.5 pct for two years ahead and 3.0 pct for three years ahead (3.3 pct in January).

For the first time since October 2022, three-year ahead corporate expectations entered the target tolerance band. They stood at 4.0 pct, having fallen from 5.0 pct.

Two-year ahead corporate expectations measured 5.0 pct, unchanged from the previous survey," it said.

"Financial and corporate sector expectations indicate that both sectors anticipate dissipation of inflationary pressures in the coming period and inflation’s gradual return within the target band," the NBS also said.