Serbia Inflation Slows Sharply In January

(RTTNews) - Serbia's consumer price inflation eased for the second straight month in January at a faster pace, figures from the Statistical Office of the Republic of Serbia showed Monday.

The consumer price index rose only 0.1 percent year-on-year in January, much slower than December's 1.7 percent increase. In November, prices had risen 2.4 percent.

Month-on-month, consumer prices fell 0.2 percent in January.

Transport costs dropped 2.0 percent in January from the previous month and health charges fell by 1.6 percent. At the same time, prices of food and non-alcoholic beverages grew by 0.6 percent and utility costs rose 0.4 percent.

On February 12, Serbia's central bank held its key interest rate unchanged for a third month in a row at 8 percent, as inflation continues to remain below target, mainly due to temporary factors.

In the February Inflation Report, the bank said year-on-year inflation is likely to return within the target tolerance band of 4.0±1.5 percent around mid-year and then move around the target until the end of the year.