Serbian business and financial sectors expect 3.2-5.0 pct one-year ahead inflation

BELGRADE - The National Bank of Serbia (NBS) says the results of an April Ninamedia survey indicate that one-year ahead inflation expectations of the financial sector have dropped to 3.9 pct from 4.0 pct in March, continuing on a downward path towards the NBS target midpoint.

"The latest, May Bloomberg survey shows that one-year ahead expectations of the financial sector remained close to the target midpoint, at 3.2 pct," the central bank said in a statement.

One-year ahead corporate expectations stayed unchanged, at 5.0 pct.

"Medium-term inflation expectations of the financial sector were within the NBS target tolerance band, moving around the target midpoint, as two-year ahead expectations came at 3.3 pct (a decline from the March 3.5 pct) and three-year ahead expectations at 3.0 pct (a decline from the March 3.2 pct).

Two-year ahead corporate inflation expectations measured 5.0 pct, the same as in the previous survey, while three-year ahead inflation expectations amounted to 3.8 pct (3.5 pct in March)," it said.

The survey results show that both financial and corporate sectors "anticipate an additional mitigation of inflationary pressures in the coming period," the NBS also said.