Bosnia’s Serb Republic CPI drops 0.2% y/y in August 2013

By bne IntelliNews September 24, 2013

Bosnia’s Serb Republic consumer price index (CPI) edged down 0.2% y/y in August 2013 after increasing 0.6% y/y the month before, dragged down by falling transport, clothing and footwear and restaurants and hotels costs, the entity’s statistics office said. Slower annual growth of food and alcoholic beverage prices also contributed to the overall index decline.

In monthly terms, the CPI edged down 0.4% in August after dropping 0.9% m/m in July. Compared to the 2012 average, it was by 1.1% lower.

Clothing and footwear prices deflation deepened to 11.2% y/y in August from 9.5% y/y the month before. Transport prices, likewise, fell 2.3% y/y in August after edging up 0.5% y/y in July. Restaurants and hotels charges inched down 0.1% y/y in August, the same as the month before.

The annual growth of food and non-alcoholic beverage price eased to 1.3% y/y last month from 1.8% in July. Prices of alcoholic beverages recorded the strongest annual growth of 5.2% in August, despite narrowing from a 5.5% y/y hike the month before.

Bosnia’s Serb Republic average inflation slowed to 2.1% last year from 3.9% in 2011, mainly due to slower increase of food and transport prices. The consumer price growth will likely remain moderate in the near-to-medium term, reflecting subdued household consumption and income amid rising unemployment and falling real wages.

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