October 23 (SeeNews) - Erste Group said on Tuesday it expects Serbia's inflation to gradually quicken by the end of this year, as the base effect of 2017 fades.
The faster economic growth will support the gradual rise of inflation in Serbia, while the foreign exchange interventions by the central bank seem sufficient to curb the pressures towards the depreciation of the Serbian dinar, Erste said in an e-mailed statement.
Serbia recorded a budget surplus of 51 billion dinars in the first eight months of 2018, exceeding expectations, Erste said. "In the last quarter, we expect a more expansive fiscal stance, with the rise in pensions and salaries in the public sector playing a key role. However, owing to the favorable fiscal trends, good economic performance and the announced purchases of state bonds, we do not anticipate risks for the sustainability of public debt."
Serbia's average annual consumer price inflation quickened to 2.1% in September from 2.6% in August, the national statistical office said earlier this month.
The country's annual consumer price inflation accelerated to 3.0% in 2017 from 1.2% in 2016.