Bosnia’s Serb Republic CPI declined 1.8% y/y in January 2014, deteriorating from a 1.5% y/y drop in December, dragged down by falling food, housing, clothing and footwear, transport, and furnishings costs, the entity’s statistics office said in a statement on February 24. In monthly terms, the CPI edged up 0.1% m/m in January, after inching down 0.2% in December. Compared to the 2013 average, the CPI fell 0.6% in January.

Food and non-alcoholic beverage prices fell for a fifth straight month in January shrinking 4.0% y/y, deteriorating from a 3.7% y/y decline in December. Clothing and footwear prices declined 8.8% y/y in January, following a 8.4% y/y contraction the month before. Furnishing prices deflation deepened to 1.2% y/y in January from 0.5% in December. Transport prices continued retreating, inching down 0.1% y/y in January after decreasing 0.2% y/y in December. Housing and utilities charges edged down 0.6% y/y in January following a 0.2% y/y drop in December, likewise, pushing the overall index down.

Prices of alcoholic beverages, recorded the strongest annual growth in January, rising 5.7% y/y after increasing 4.7% y/y in December.

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. 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.