Serbian economy is on upward trajectory, inflation expectations are anchored

Photo: Freepik.com

According to the February survey, short and medium-term inflation expectations of the financial sector and the economy are within the target range, which is 3, plus/minus 1.5 percent, the National Bank of Serbia (NBS) has announced.

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Inflation expectations of the financial sector for the year ahead continued to be steadily close to the level of 2.0 percent, while according to a survey conducted by the Ipsos agency, in February it amounted to 1.9 percent. Businesspeople expect slightly lower inflation in the same period, 1.5 percent, which is the same as in the previous survey.

When it comes to medium-term inflation expectations (for February 2023 and 2024) they are at a level slightly above 2 percent in the financial sector, while expectations of businesspeople are lower, at 1.8 percent.

The achieved anchoring of inflation expectations contributes to increased efficiency of the monetary policy in maintaining low, stable and predictable inflation in the medium term, which is one of the necessary preconditions for sustainable economic growth, the central bank said.

(Telegraf Biznis)