Annual inflation in Bosnia and Herzegovina (BiH), which reached 5.5 percent at the end of last year, represents the highest inflation growth since 1997. Because of this news, alarm bells would be rung in all countries, but not in our country.
Knowing that the economy in 1997 was burdened by the just-ended war and the completely destroyed economy, this data shows additional seriousness.
Economic expert Aleksa Milojevic stated that our economy has come to an end because we do not have our own goods, so we are buying a foreign one.
“Since we don’t have our own goods, there is no competition for domestic goods, so foreigners raise their prices. We have imported goods that are more expensive here than in their home countries. Now foreigners manage our prices because in these 20 years the domestic economy has been destroyed and we cannot compete with foreign goods, “ Milojevic said.
Back in April 2020, he said that pandemic measures taken by world authorities would produce high inflation. Milojevic clearly emphasized the imported character of inflation, and economist Admir Cavalic agrees.
Inflation is imported, but still, it remains here, and what is worse, it has a direct impact on anticipations. It is important to note that domestic authorities do not have the classic elements of monetary policy available, so solutions must be found in other macroeconomic policies and microeconomic interventions. In order to support the domestic economy, it is necessary to work on reducing operating costs, “ he mentioned.
Records are not falling only in our country, it is similar in the European Union (EU), according to the latest Eurostat reports. Inflation in the eurozone rose to 5.0 percent year on year in December 2021, which is a new record level.
The same trends are present in the United States (U.S.). Prices in the U.S. increased by 7 percent in December 2021 compared to the year before – which is the highest inflation rate in 40 years, the Secretariat of Finance announced. Higher inflation in the U.S. was recorded back in 1982.
E.Dz.
Source: Klix.ba
