How Business People See Inflation in Serbia

As indicated by the Ipsos survey conducted last December, short- and medium-term inflation expectations of the financial sector continue to move within the bounds of the NBS target tolerance band (3±1.5%). Representatives of the financial sector expect that in December 2022 inflation will measure 4.5%.

According to the results of the January Bloomberg survey, one-year ahead inflation expectations of the financial sector are lower and equal 3.5%.

Under the Ipsos survey, inflation expectations of the corporate sector increased in December to 6.0%, reflecting to a large degree the energy crisis and uncertainty over electricity prices that existed at the time of the survey. Such higher inflation expectations of corporates are most probably also a consequence of the cost-push pressures in terms of both prices of other production inputs and prices of own final products and services, the National Bank of Serbia says in an announcement.

Inflation expectations for two and three years ahead remain anchored within the target band in case of both the financial and corporate sector, ranging between 3.0% and 4.0%. These results indicate that the financial and corporate sector perceive the current higher inflation as temporary, which is an assessment shared by the NBS, as well as most central banks in the world, the announcement adds.

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