Serbia: Inflation comes in at highest level since May 2011 in August
Inflation rose to 13.2% in August, which was up from July’s 12.8%. August’s result was the highest inflation rate since May 2011 and was driven by a strong increase in food and non-alcoholic beverages, transport, housing, water, electricity, gas and other fuels, and restaurants and hotels.
The trend pointed up, with annual average inflation coming in at 9.3% in August (July: 8.6%). Meanwhile, harmonized inflation rose to 12.8% in August, from July’s 12.5%.
Lastly, consumer prices rose 1.20% in August over the previous month, above the 1.03% rise seen in July.
Analysts at the EIU added:
“Since mid-2021 headline inflation has accelerated sharply, amid soaring energy, food and raw material prices (buoyed by the war in Ukraine and ongoing global supply-chain frictions), firming services demand (after the lifting of coronavirus restrictions) and inflated base effects. […] We expect inflation to moderate gradually from a peak in the third quarter, amid softer demand, diminishing base effects and a slight easing of supply-side constraints, but uncertainty will persist over the path of energy costs. We forecast average inflation of 110.8% in 2022 and 6.3% in 2023.”