13.09.201009:35:00UTC+00Serbian Inflation Quickens In August

Consumer price inflation in Serbia accelerated for the third consecutive month in August, the Statistical Office of the Republic of Serbia said Monday.

Annual inflation accelerated to 6.6% in August from 5.1% in June. Prices of food and non-alcoholic beverages increased 4.4% annually during the month and prices of alcoholic beverages and tobacco climbed 12.9%.

While prices of clothing and footwear grew 4% from August last year, costs of housing, water, electricity, gas ans other fuels were 10% higher than the same month last year. Transport costs also surged, rising 10.5% annually. Monthly consumer price inflation was 1.4% during the month.

The August inflation was in line with the central bank's forecast. The bank had projected inflation to move around the 6.7% target with a tolerance band of 2% in August.

Last week, the central bank raised the benchmark reference rate by 0.5 percentage points to 9%, in view of the mounting inflationary pressures and expected faster recovery in demand. The bank had also noted that inflation in August was largely affected by higher food inflation resulting from poor harvest.

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