Inflation is constantly present, although it is currently higher than usual, said Ljiljan Veselinovic, a professor at the Faculty of Economics at the University of Sarajevo (UNSA), in an interview with “Avaz“.
“What we need to mention is that this is a temporary situation, where it is possible for stabilization in the near future. We can see the movements of oil on the stock exchanges, where there was first growth of up to 130 dollars per barrel, and then there was a decrease to about 110,” added Veselinovic.
Uncertain situation
The central bank has announced that it expects high inflation, however, Veselinovic hopes that such forecasts will be short-lived and that a return to the old way will follow.
He emphasizes that, although the situation is uncertain, we should not panic.
“That is important, because that panic itself leads to a situation when we buy more, we temporarily increase the demand for goods to which the supply cannot respond in a short period of time, and in that way we lead to shortages,” Veselinovic pointed out.
Raising wages
Asked whether the rise in prices should be accompanied by the growth of wages, he reminded that they are a very significant cost for all employers and that wages as a cost are included in the price of products.
“When we raise wages, we automatically raise product prices. An increase in wages would lead to an increase in operating costs, which would lead to a new rise in prices. However, employers who have the opportunity to raise them, should definitely do that,” said Veselinovic.
Creating inventory
“It is quite normal to create certain smaller stocks in such situations. But panicky shopping can lead us to a situation where we cannot find a product, but also that some quantities that people bought out of fear break down and are not used. That is not good for the economy,” said Veselinovic.
