NBS: Inflation at 9 to 10 percent by year's end

According to the National Bank of Serbia's central projection, inflation by the end of this year may reach between 9 and 10 percent, it was said Wednesday at a press conference on the premises of the NBS.

As NBS expert Snezana Vilart said, this projection is based on the planned 2 percent increase in the VAT (from 18 to 20 percent and from 8 to 10 percent) as well as on the growth of regulated prices (electricity, gas and drugs).

Regulated prices rose 3.1 percent in the first seven months, and if a new increase happens by the year's end, inflation will amount up to 9.5 percent, she said.

If regulated prices cease to grow, inflation will be one percent lower.

As it was pointed out, inflation is affected the most by a rise in the prices of agricultural and food products that is caused by a drought.