December 22 (SeeNews) - Serbia's central bank, NBS, said on Thursday that the financial and corporate sectors in the country believe that price stability will be maintained over the next 12 months and in the medium term.
One-year ahead inflation expectations of the financial sector were updated to 2.15% from 2.0% a month earlier, while those of corporates remained at 2.0% for the eighth straight month, NBS said in its monthly Inflation Expectations Survey report for November.
The inflation expectations of the financial and corporate sectors for November 2018 stood at 2.8% and 2.0%, respectively, NBS said.
In November, one-year ahead inflation expectations of households came in at 6.0%, down from 7.0% in October, while those of trade unions decreased to 2.3% from 2.6%.
Looking two years ahead, households expect 5.0% inflation, down from 7.0% in October, while trade union's expectations rose from 2.0% in October to 3.0% in November.
“Well-anchored inflation expectations enhance the effectiveness of the monetary policy in maintaining low, stable and predictable inflation over the medium run,” NBS noted.
Serbia's annual consumer price inflation came in at 1.5% in November, the same rate as in October, according to data from the national statistical office. On a month-to-month basis, the consumer price index (CPI) declined by 0.1% in November.
NBS expects the inflation rate to remain stable and low and to stand within its 1.5%-4.5% target band at the beginning of next year.