Professor: Inflation in Serbia twice the target

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Category: Politics

Published on Tuesday, 26 October 2021 08:12

October 25, 2021
Serbia has a massive jump in prices, which indicates inflation twice as high as the target of the National Bank of Serbia (NBS), a professor of the Faculty of Economics in the southern city of Nis, has said on Monday.
Boban Stojanovic added that official data already put inflation at 6.5 percent a year but said that everyone saw higher prices.
„There are also inflation expectations, although the NBS says they do not exist. It is an additional disorder that can further affect the increase in prices,“ said Stojanović.
He added the state and the NBS were not doing enough to preserve the stability of the general price level, which is a precondition for macroeconomic stability.
„The state should find mechanisms from its domain that will prevent further growth of prices, i.e. the beginning of a spiral that can lead to double-digit inflation. Such a situation in the economy additionally destabilises market relations, and that is a vicious circle from which it is difficult to get out,“ Stojanovic warned.
Monetary and fiscal policy, he said, should be networked to curb price growth and thus influence the population living standard, which had been significantly reduced due to rising prices.
The purchasing power of the population, he added, is fragile even in stable conditions.
„The research showed that the purchase of any four staples in Germany requires 40 percent of the salary, and in Serbia, four average salaries are needed for the same,“ Stojanovic said.
According to him, with the growth of prices, the purchasing power decreases because salaries do not follow the rice in prices.
„Inflation is progressing in the medium and long term, and the sooner it is curbed, and the system returns to equilibrium, the better,“ said Stojanovic.
Source:  https://rs.n1info.com/english/news/professor-inflation-in-serbia-twice-the-target/