Serbia's year-ahead inflation expectations fall further in April

In January, the year-ahead inflation expectations entered the NBS target band for the first time in almost two years.

In April, the year-ahead expectations of the corporate sector remained unchanged at 5.0%, NBS said in a statement earlier this month, citing the results of a Ninamedija survey.

In addition, the financial and corporate sectors' two- and three-year ahead inflation expectations are mostly lower than their short-term expectations, signaling their anticipation of further easing of inflationary pressures in the coming period, NBS noted.

In April, the financial sector expectations for two years ahead fell to 3.3% from March's 3.5%, and dropped to 3.0% from March's 3.2% for three years ahead. The medium-term corporate expectations remained flat at 5.0% for two years ahead, and rose to 3.8% from March's 3.5% for three years ahead.

In April, NBS said annual inflation is expected to return to the targeted range of 1.5% to 4.5% already in May, a month earlier than previously expected. Inflation should approach the target midpoint by year-end and hover around that level in the medium term.

Annual consumer price growth remained unchanged at 5% in April, Serbia's statistical office said earlier in May.