Serbian financial sector expects 8 pct inflation in January 2024

BELGRADE - According to the results of an Ipsos survey, the Serbian financial sector expects one-year ahead inflation (in January 2024) to be 8 pct, unchanged for a fourth consecutive month, the National Bank of Serbia (NBS) has said.

According to the February Bloomberg survey, one-year ahead inflation expectations are lower, at 7.0 pct, the central bank said in a statement.

"Short-term inflation expectations of corporates (one-year ahead) stabilised in the previous five months at around 10.0 pct, the same as in the January survey.

Two- and three-year ahead inflation expectations of both the financial and corporate sector are lower than short-term expectations.

Medium-term inflation expectations of the financial sector remained unchanged from the previous survey, measuring 5.0 pct for two years ahead and staying within the NBS target tolerance band at 4.0 pct for three years ahead.

Corporate inflation expectations were somewhat higher, measuring 7.0 pct for two years ahead and 5.0 pct for three years ahead.

The results of the survey for two and three years ahead might indicate that both the financial and corporate sector expect inflationary pressures to subside going forward and inflation to return within the target tolerance band in the medium run," the NBS also said.