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    Tabakovic: Potatoes rose in price by 152 percent because there was no celebration

    The year-on-year prices of unprocessed food in Serbia increased by 24.8 percent in July, and by 11 percent in the Eurozone.

    At the presentation of the Inflation Report, when asked by a journalist of the „Danas“ daily newspaper what is the cause of that difference, Milan Trajkovic, Deputy Director General of the Sector for Economic Research and Statistics at the NBS, said that two years ago food prices in Serbia were at a low level.

    „In addition to the drought that affected prices, the EU market is significantly larger and deeper. We have higher price volatility“, he stated.

    Governor Jorgovanka Tabakovic also offered an „interesting“ explanation.

    „The consumption of that type of food has decreased during the pandemic. We have a situation where the price of potatoes has risen by 152 percent. When the pandemic passed, people started organizing weddings and celebrations and consumption increased, and that, in addition to the drought and other factors, led to an increase in prices,“ the governor concluded.

    She added that „the NBS tries to avoid price spillover effects due to the exchange rate, but it cannot prevent farmers from reflecting to world markets and prices“.

    Izvor: Danas

    Foto: Pixabay

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