April 12 (SeeNews) - Erste Group increased its forecast for the increase of average consumer prices in Serbia in 2022 to 8.6% from 7.2% predicted earlier due to supply chain disruptions, it said on Tuesday.
"Inflation is likely to average close to double-digit figures this year before gradually reverting towards the central bank's target range next year. While core inflation growth was relatively modest so far, high producer price index is bound to pass-through to the former," Erste Group said in an instant comment after the country's statistical office said earlier in the day that the country's consumer prices rose by 9.1% year-on-year in March, after growing by 8.8% the month before.
Erste also raised its projection for Serbia's average inflation in 2023 to 5.8% from 4.2%.
The passing of the burden on higher energy prices to consumers will depend on Serbia's bilateral deals with Russia regarding gas prices and overall government fiscal capacity, Erste Group noted.
Serbia's statistical institute said the rise in consumer in March was chiefly due to a 15.7% increase in the prices of food and non-alcoholic beverages as well as a 12.5% growth of transport costs.