Bosnia’s Serb Republic CPI declines 1.7% y/y in Feb 2014

By bne IntelliNews March 26, 2014

Bosnia’s Serb Republic CPI decreased by 1.7% y/y in February 2014, improving slightly from a 1.8% y/y drop the month before, the entity’s statistics office said in a statement on March 26. The reading continues to be dragged down by falling food, housing, clothing and footwear, transport, and furnishings costs.

In monthly terms, the CPI edged up 0.2% m/m in February, after inching up 0.1% in January. Compared to the 2013 average, the CPI fell 0.4% in February.

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

Food and non-alcoholic beverage prices fell for a sixth straight month in February, going down by 4.1% y/y, deteriorating from a 4.0% y/y decline the month before. Clothing and footwear prices declined 7.8% y/y in February, following a 8.8% y/y contraction in January. Furnishing prices deflation deepened to 1.4% y/y in February from 1.2% the month before. Transport prices, likewise, remained in the red, shrinking 1.6% y/y in February after decreasing 0.1% y/y in January. Housing and utilities charges edged down 0.6% y/y in February, recording the same annual drop as in January.

Prices of alcoholic beverages grew 5.6% y/y in February after increasing 5.7% y/y the month before.

The average CPI inflation last year was 0.0%, down from 2.1% in 2012 on falling transport and furnishing charges and slower growth of food prices.

Related Articles

Political uncertainty remains main risk to Bosnia’s economic growth, World Bank says

Political uncertainty remains the main risk to Bosnia & Herzegovina’s medium-term outlook as the lack of agreement between entities could delay reforms, the World Bank said in the ... more

Shell again eyes oil, gas exploration in Bosnia

Royal Dutch Shell is again interested in oil and gas exploration in Bosnia & Herzegovina ... more

Bosnia indicts former interior minister, 37 others for organised crime

The prosecution of Bosnia & Herzegovina’s Sarajevo canton formally indicted former interior minister Alija Delimustafic and 37 other individuals, as well as eight legal entities in a large ... more