National Bank of Serbia (NBS) publishes August Inflation Report: Here's what awaits us by the end of 2025

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For the rest of this year, the inflation rate in Serbia is expected to hover around the upper bound of the target tolerance band (3±1.5%), which is higher than the previous forecast, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic stated on Wedensday.

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During the presentation of the August Inflation Report, which was adopted by the NBS Executive Board on August 7, Tabakovic pointed out that in 2026, inflation will be around 4.0 percent and within the target range.

Tabakovic added that after April and May, when inflation slowed down, it accelerated to 4.6 percent in June, and to 4.9 percent in July, and stressed that this has occurred due to the rise in prices of unprocessed food, as well as the prices of oil, caused by the war between Israel and Iran.

The governor assessed that the trends in fruit prices are very significant, and have been influenced first by late frosts in the spring and then the drought that started in June, which is why fruit yields are lower than usual, causing a rise in prices.

According to Tabakovic, unfavorable weather conditions are becoming more frequent and therefore the NBS has taken several measures to systematically address this problem, and has held discussions with other actors in society, including insurers, about joint measures to mitigate the impact of climate factors on food prices.

(Telegraf Biznis/Tanjug)