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Serbian financial, corporate sectors expect stable inflation - c-bank

Author Radomir Ralev
Serbian financial, corporate sectors expect stable inflation - c-bank Author: SeeNews. License: All rights reserved.

BELGRADE (Serbia), July 19 (SeeNews) - Serbia's financial and corporate sectors expect inflation to stand bellow the middle of the 1.5%-4.5% target band in the short and medium term, the country's central bank, NBS, said.

One-year-ahead inflation expectations of the finance sector stood at 2.8% and of the corporate sector amounted to 2.5%, NBS said on Friday in its monthly inflation Expectations Survey for June.

In June, one-year ahead inflation expectations of households came in at 6.0%, while the short-term forecast of trade unions was 3.0%.

Looking two years ahead, the finance sector expects 3.0% inflation, while the corporate sector envisages 2.8%, NBS said.

Last week, Serbia's central bank decided to cut its key repo rate to 2.75% from 3.0% to back economic growth amid low inflationary pressure. Inflation was tightly controlled for the sixth consecutive year, and is expected to stay in the lower part of the 1.5%-4.5% target band by the end of next year, the central bank said back then.

Serbia's average annual consumer price inflation slowed to 1.5% in June, from 2.2% in May, official statistics show.