The fall in inflation in Serbia, which began at the end of the summer and now stands at 10.2%, is not really palpable to citizens, economist Ljubodrag Savić told Euractiv.
The main reason for this, according to the economist, is because food inflation is affecting Serbs the most. The official inflation rate for food stands at 14.7%, with vegetables having the most significant year-on-year increase, at 26.7%, Serbia’s statistical office found.
“The most important inflation rate is the one that relates to what we spend the majority of our money on, which is food,” Savić told Euractiv.
The very high rate for food has a “greater impact on citizens’ budgets”, he said, noting that the reduction in inflation is also less tangible for citizens because inflation, which has the second biggest impact on budgets, is linked to everything “related to food”.
“This tells us that we need to be very cautious with the rate, not in the sense that someone is misleading the citizens, but simply methodologically, these are mostly estimates,” he said, noting that global inflation is not decreasing.
Savić also has little optimism for citizens because of the upcoming elections in Serbia.
“Elections are approaching, and spending money in the form of aid to citizens continues. I don’t think it’s a bad thing; at this moment, every bit of help is welcome,” he said.
At the same time, “we are increasing citizens’ purchasing power, and consequently, inflation,” Savić said, emphasising the government’s goal with such measures is unclear.
The increase in prices through taxes is also something Savić worries about.
(Jelena Jevtić | EURACTIV.rs)
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Source: euractiv.com
