Expected Inflation in BiH is 1.6 %

Inflation of 1.6 % annually can be expected in BiH this year, according to the Directorate for Economic Planning of BiH.

The projection is created on the basis of the expectations of the European Commission for this year, according to which the inflation rate in the EU should amount to 1.9 %.

Available data on the prices of crude oil on the world market indicate a decrease of 5.9 % on annual basis, while the inflation could amount to 1.8 % according to projections of the European Commission.

With stable prices of food in the world market, the continuation of the gradual increase of prices of cigarettes in BiH and without changes in the prices of communal services, inflation is expected to be increased by 1.5 % in the upcoming year.

The projection for 2020 is that the level of inflation will be 1.6 % and 1.4 % in the year of 2021.

The Directorate for Economic Planning of BiH stated that any deviation from the assumed movement of prices of domestic and external factors that determine prices in BiH can affect the overall level of inflation for the period 2019-2021, which also represent the risk for the aforementioned projections.

(Source: klix.ba)

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