National Bank Governor: October Inflation above Projections

Jorgovanka Tabakovic (BETAPHOTO)

Inflation in Serbia in October had risen 15 percent year-on-year and was more than expected due to increased prices of fuels and foodstuffs in the world market, National Bank of Serbia Governor Jorgovanka Tabakovic said on Nov. 15. 

Presenting the November inflation report, Tabakovic said she could not claim that inflation had hit its “peak” due to external factors which were outside the control of the government. She also said that “imported” inflation contributed two thirds to headline inflation and also to year-on-year core inflation which stood at 9.5 percent in October.

“It is still considerably lower than headline inflation and inflation rates in the countries in the region which apply the same monetary policy,” the governor said. She added that the Central Bank would continue to tighten measures in the domestic market, but at a slower pace. 

Tabakovic also said that unfavorable international conditions and crisis had affected GDP growth projections for Serbia, which was estimated to grow between two and three percent, possibly closer to three percent, by the end of the year. She added that GDP could grow around 3.5 percent in 2023 and around four percent in 2024.