The National Bank of Serbia (NBS) said in its latest report that inflation stood at 12.8 percent in July, mainly because of higher food and fuel prices.
NBS Governor Jorgovanka Tabakovic told a presentation of the report that central bank experts think inflation will peak in September. “The rise in prices in the third quarter will mainly be caused by higher production costs due to rising fuel prices as well as high farm produce and industrial raw material prices and a significant rise in production prices from our trade partners in the Euro zone,” the report said.
Tabakovic said that inflation is expected to drop gradually due to tighter monetary conditions and government limits on some prices but added that fruit and vegetable prices are expected to rise because of the drought.
The NBS report said that the current account deficit is expected to rise to 9.4 percent of the GDP.
Fuel imports totaled 3.1 billion Euro this year or 2.1 billion more than in the first half of 2021, the report said.
Tabakovic said she expects foreign direct investments of 3.3 billion Euro are expected this year and added that the country’s hard currency reserves stood t 15 billion Euro at the end of July.