Bosnia’s Federation consumer prices drop 1.2% y/y in Oct 2013

By bne IntelliNews November 18, 2013

Bosnia’s Federation consumer price deflation deepened to 1.2% y/y in October 2013 from a 0.9% y/y in September as falling food, clothing and footwear, transport and health costs offset rising alcoholic beverage and housing charges, the entity’s statistics office said.

The annual CPI inflation has been retreating since August 2013, reflecting subdued household consumption amid rising unemployment and falling real wages and cash inflows from abroad.

In monthly terms, the CPI edged down 0.2% in October after increasing 0.1% in September. The CPI index fell 0.9% compared to the 2012 average.

Food and beverages price deflation deepened to 2.6% y/y in October from 1.7% y/y the month before. Transport costs, likewise, remained in the red, shrinking 2.5% y/y in October despite narrowing from a 3.2% y/y contraction in September. Clothing and footwear prices fell 7.4% y/y in October after declining 10.6% y/y in the month before. Health charges retreated 4.7% y/y in October following a 4.4% y/y decline in September.

Alcoholic beverages and tobacco costs recorded the steepest annual increase in October, rising by 7.1% y/y, the same as the previous month.

Bosnia’s Federation annual consumer price inflation retreated to 1.6% at end-2012 from 2.9% the year before due mainly to falling clothing and health charges.

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