Bosnian c-bank sees inflation at 0.27% in 2020, 1% in 2021

The slowdown is directly reflected in the very slight expected rise in prices in 2020, CBBH said in a statement earlier this month.

"For 2021, inflation is projected to be 1%, which indicates that no significant inflationary pressures are expected. The current monetary policy arrangement has largely enabled low inflation to be maintained, which is one of the preconditions for sustainable economic growth," it added.

The announcement is made as part of a semi-annual research on inflation, which CBBH has recently started to carry out on the recommendation of the European Commission. The collected data and analysis mainly reflect the inflation forecasts of Bosnian financial experts for the current and next year.

CBBH said it will continue to regularly conduct these surveys in cooperation with domestic banks and insurance companies.

Bosnia's consumer price index (CPI) decreased by 1.5% year-on-year in September, after dropping by 1.2% a month earlier, according to the latest data of the country's statistical office.

In 2019, Bosnia's average consumer price inflation slowed down to 0.6%, from 1.4% in 2018.

Last month, the International Monetary Fund (IMF) said it expects Bosnia to turn to 0.8% annual consumer price deflation in 2020, from 0.7% inflation a year earlier. For 2021, the IMF forecasts inflation of 0.4% in Bosnia.