Bosnia’s Federation CPI holds at 0.1% y/y in May 2013

By bne IntelliNews June 18, 2013

Bosnia’s Federation CPI inflation flattened at 0.1% y/y in May 2013, the same as the month before, as rising alcoholic beverages and food charges were offset by falling transport, clothing and health prices, the entity’s statistical office said.

The CPI will likely remain moderate in the near-to-medium term, reflecting subdued household consumption and income amid rising unemployment and falling real wages.

In monthly terms, CPI fell 0.1% in May after stagnating at 0.0% m/m a month earlier.

Alcoholic beverages and tobacco prices recorded the highest annual growth of 6.8% in May, edging up from a 6.7% y/y increase the month before. Food prices inched up 0.9% y/y, slowing from 1.0% y/y in April.

Prices of transport remained in the red, shrinking 2.5% y/y in May for a third straight month. May’s clothing and footwear prices also fell by 7.8% y/y, narrowing from a 9.3% y/y drop in April. Health prices also shrank 4.7% y/y in May, unchanged compared to the month before.

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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