February 27 (SeeNews) - Erste Group expects Serbia's average annual consumer price inflation to accelerate slightly to 2.1% in 2019 from 2.0% last year, the Austria-based banking group said.
"Inflation is expected to move well inside the target band, likely staying in the lower part of the band throughout the year," Erste said in a research note earlier this week following the release of the country's consumer price index (CPI) for January.
Low base figures for fruit and vegetable products are expected to contribute positively to the headline figure throughout the first quarter of 2019, Erste said.
"On the other hand uncertainties mostly stem from the external environment and the associated developments in the commodity markets."
Earlier this month, Serbia's central bank said it expects inflation to remain within the 1.5%-4.5% target band in the coming period.
Serbia's average annual consumer price inflation accelerated to 2.1% in January from 2.0% in December, the country's statistical office said last week.
Food and non-alcoholic beverage category was the strongest positive monthly contributor as prices of vegetables rose 8.4% month-on-month. On the other hand, lower clothing and footwear prices due to the usual seasonal sales and cheaper fuels were the strongest disinflationary factors.