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.