Serbia inflation rate hits 2.2 percent in August

Serbia's annual inflation rate reached 2.2 percent in August, remaining below the National Bank of Serbia's 3.0 percent target. While this represents a slight acceleration compared to July, the rate remains within the central bank's target range.

On a monthly basis, consumer prices rose by 0.5 percent. This increase was driven by rising prices for oil derivatives, core inflation components, and fresh meat. Specifically, fresh meat prices rose by 4.7 percent, contributing to a 1.3 percent monthly increase in unprocessed food prices.

Energy prices saw a monthly increase of 1.3 percent, largely due to a 3.1 percent rise in oil derivatives, bringing the annual energy price increase to 11.0 percent. The National Bank of Serbia attributes the recent price movements to a prolonged energy shock and rising global oil prices.

Core inflation stood at 4.7 percent on an annual basis. Looking ahead, the National Bank of Serbia expects inflation to rise to approximately 4.0 percent in September, primarily due to a low base effect from the previous year following the implementation of regulations regarding wholesale trade margins.