Inflation in Serbia stood at 7.5% in November, the highest in eight years. In developed countries, such inflation has not been recorded for several decades.

Central banks agreed that this was a consequence of supply disruptions and that it was a temporary phenomenon. However, Milojko Arsić, professor at the Faculty of Economics in Belgrade, points out that there has been a disruption in a large number of independent markets such as energy, food and chips, indicating that the cause of inflation is linked to demand due to fiscal and monetary expansion around the world.

“The big central banks realize that high inflation is not temporary and announce an increase in benchmark interest rates. The Fed announced an increase from next year. The Bank of England has already raised its key rate, as have some central European central banks. The ECB has not yet announced an interest rate hike, but decisions are being taken more slowly in the euro area, due to the different level of recovery in EU countries, ”Prof. Arsić stressed.

Outside of European countries, only Estonia and Lithuania experienced higher annual inflation in November than Serbia, and this coincides with fiscal expansion during the pandemic.

(Danas, 23.12.2021)