Serbian gov’t sets assertive inflation goal

Serbian gov’t sets assertive inflation goal

BELGRADE - Agence France-Presse
Serbia aims to rein in inflation from an estimated 13 percent this year to 4 percent in 2013, the central bank governor said on Dec. 24.

The forecast is “four percent, give or take 1.5 percentage points,” governor Jorgovanka Tabakovic told reporters.

In November, inflation dropped by one percentage point to 11.9 percent after rising for two consecutive months because of a hike in value-added tax and a poor harvest.

The Central Bank forecasts that the economy will grow by 2.5 percent next year after shrinking by two percent in 2012.

Serbia is trying to secure a three-year precautionary agreement with the International Monetary Fund (IMF), which has frozen a one billion euro ($1.3 billion) stand-by loan because Belgrade did not keep to figures agreed for the 2012 budget.