Bosnia’s Federation CPI declines 1.3% y/y in Jan 2014

By bne IntelliNews February 28, 2014

Bosnia’s Federation CPI deflation narrowed slightly in January 2014 to 1.3% y/y from 1.4% y/y in December, due to slower decline of clothing and footwear and health costs, the statistics office said in a statement. Falling food and transport charges continued to push the overall index down. In monthly terms, the CPI edged up 0.3% m/m in January, after inching down 0.4% in December.

Food and non-alcoholic beverage prices fell 3.9% y/y in January, recording the same annual drop as in the month before. Clothing and footwear prices declined 1.4% y/y in January, following a 4.3% y/y contraction the month before. Transport prices continued retreating, shrinking 1.2% y/y in January, declining at the same pace as in December. Health prices deflation narrowed to 1.8% y/y in January from 3.5% in December.

Prices of alcoholic beverages, recorded the strongest annual growth in January, rising 5.6% y/y, albeit narrowing from a 6.8% y/y hike the month before.

Consumer prices in Bosnia’s bigger entity have been declining since August 2013 reflecting subdued household consumption amid rising unemployment, falling real wages and cash inflows from abroad. 

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