Bosnia and Herzegovina economic updates: inflation risks and revenue growth

The Central Bank of Bosnia and Herzegovina (BiH) projects that inflation could rise again by the end of the year, with total inflation potentially reaching 4.1 percent in the fourth quarter. This estimate is driven by expected increases in food prices and external energy costs, despite a recent slowdown in inflation during June and July.

In the Federation of BiH, tax authorities reported that public revenues reached approximately 5.88 billion KM between January and August 2026. This represents a 12.19 percent increase compared to the same period in 2024, with the Sarajevo Canton contributing the largest share at 37.16 percent.

Social and institutional issues remain prominent. Caregiver parents in the Federation of BiH currently receive 1,027 KM monthly, with pending legislative changes aimed at removing age limits and expanding eligibility. Meanwhile, the consumer ombudsman recorded nearly 900 complaints in the first eight months of the year, primarily regarding utilities and summer concert services. Additionally, reports highlight a disparity in funding, noting that while citizens rely on humanitarian SMS campaigns for medical treatments, political parties received 18.8 million KM in public funding last year.