Serbia: Inflation jumps in February
Consumer prices rose 1.10% in February over the previous month, increasing from the 0.80% rise recorded in January. Looking at the details of the release, the print reflected a notable increase in the prices for alcoholic beverages tobacco and narcotics, offsetting softer growth in food and non-alcoholic beverages as well as transport prices. Prices for clothing and footwear, meanwhile, dropped in the month.
Inflation, meanwhile, continued to rise and came in at 8.8% in February from January’s 8.2%. February’s print marked the highest print since June 2013, and continued to reflect the impact of rising commodity prices, with prices for energy as well as food increasing rapidly. Consequently, annual average inflation rose to 5.3% in February from 4.7% in the prior month. Lastly, harmonized inflation rose to 8.8% in February from 8.3% in January.
Analysts at Erste Bank, added:
“Due to assumptions of decreased supply from Russia, oil prices have skyrocketed. Another key factor going forward is the agricultural season. Decreased supply of fertilizers in general alongside the fact that Russia and Ukraine together account for roughly a third of total world wheat exports suggest upside risks.”