Zeljko Jović: Overview of recent monetary and macroeconomic trends in Serbia

Introductory speech by Dr Zeljko Jović, Vice-Governor of the National Bank of Serbia, at the presentation of the Inflation Report - May 2023, Belgrade, 17 May 2023. 

The views expressed in this speech are those of the speaker and not the view of the BIS.

Ladies and gentlemen, esteemed members of the press, dear colleagues,

Welcome to the presentation of the May Inflation Report, where we shall present current macroeconomic developments, our new macroeconomic projections and the measures we have undertaken in the period since the previous Report.

At the very start, I would like to underline several key facts with regard to the current macroeconomic movements and our latest projections.

• First, the data on y-o-y inflation in Serbia measuring 15.1% in April confirm that inflation peak is behind us and that the monetary policy measures undertaken so far have yielded results. We are past the peak of not only headline but also core inflation. That our measures are yielding results is indicated also by the stabilised one-year ahead inflation expectations, as well as by medium-term inflation expectations of the financial sector that are kept within the bounds of the target. Our view of future inflation path has not changed since February. In the coming months, inflation should continue down, ending the year twice lower than what it measured in Q1. Inflation's return within the bounds of 3±1.5% target is still expected in mid-2024.