It is already clear to everyone that 100 BAM a few years ago is not worth the same today. Economist Faruk Hadžić gave an answer to the question of how much inflation has “eaten” the value of money in recent years.
Hadžić said that due to many inquiries, he made an analysis showing the value of 100 BAM in 2018 and at the end of 2023.
“Using the average annual inflation rate measured by the Consumer Price Index for each year, and adjusting 100 BAM with those rates, and then the new adjusted amount in the following year with the new inflation, we get that 100 BAM from 2018 is worth about 80 BAM today,” he explains.
He pointed out that this is an average movement of inflation with regard to statistical data, and that based on individual consumption preferences, this amount can be lower.
“The reason lies in the fact that the average rate of movement of food prices is much higher than the overall index, so that for people who spend more of their income on food, inflation has ‘eaten up’ more value,” concluded Hadžić.
The results of the survey on inflation expectations from December 2023 conducted by the Central Bank of BiH (CBBH) indicate positive expectations of inflation trends for 2024 and 2025, and it is considered that a further drop in inflation will affect the improvement of the economy in general, Klix.ba reports.
