Inflation Movements in February 2017
According to the Serbian Statistical Office, consumer price growth equalled 0.7% in February 2017. Y-o-y inflation continued to move within the target tolerance band (3±1.5%) and reached 3.2% in February.
As estimated by the NBS, in the first two months of 2017 inflation was driven by one-off factors such as increased prices of cigarettes, energy products, and particularly fruits and vegetables, reflecting exceptionally cold weather rather than any lasting inflationary pressure. Weak inflationary pressures are also indicated by low and stable core inflation (CPI excluding food, energy, alcohol and cigarettes), which equalled 1.7% y-o-y both in January and February.
Under the central projection, inflation movements are expected to remain relatively stable, within the target tolerance band.