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.
The expected aggregated inflation for the current year is 5.8 percent, which implies a slight decline compared to 2023, when the participants, according to the September survey, predicted an average inflation of 7.90 percent.
Inflation expectations in the first round for 2025 amount to 5.50 percent, which leads to the conclusion that a further drop in inflation is expected, given that inflationary pressures in the past year were far above the multi-year average. It is evident, according to the CBBH, that inflation movements are influenced by internal and external factors, which results in differences in expected inflation, not only in the state itself, but also between states in general.
Inflation as a macroeconomic indicator continues to represent the basic determinant of decision-making by consumers, financial institutions, the state and other participants in the macroeconomic system.
In this regard, the CBBH, as an important segment of the communication strategy, regularly conducts a survey on inflation expectations, with the aim of analyzing and continuously monitoring the inflation expectations of economic entities.
The survey participants are representatives of the financial sector, commercial banks and insurance companies.
