NBS: Inflation in Serbia is low and stable, comparable with developed countries

The National Bank of Serbia (NBS) announced today that in ten years, which is how long it has been applying the targeted inflation strategy, it succeeded in lowering inflation to low and stable levels, comparable to those in the most developed countries, and maintaining those levels in the past five years.

„Throughout the ten-year period, two sub-periods can be clearly identified, two phases in the implementation of this strategy, and the difference in achieving the basic goal of the NBS – price stability on a sustainable basis – can be clearly determined“ the central bank said.

As explained, the initial years of „inflation targeting“ (2009-2012) were marked by „high and volatile inflation“, which reached 14.7 percent in April 2011, and since 2013 it „dropped significantly“ to about 2 percent, and it was kept at that level on average in the following five years.

„Today, the inflation is at a level comparable to developed European economies – yoy inflation was 1.9 percent in November,“ the NBS said.

It is added that it has turned out that inflationary pressures cannot be suppressed in a sustainable manner without „anchoring inflationary expectations“ and full coordination of monetary and fiscal policy, as evidenced by relatively high „volatile inflation“ by the end of 2012.

Izvor: Beta

Foto: Pixabay