NBS Governor Jorgovanka Tabakovic added that central bank experts think inflation will peak in September. “The rise in prices in the third quarter will mainly be caused by higher production costs due to rising fuel prices as well as high farm produce and industrial raw material prices and a significant rise in production prices from our trade partners in the Eurozone,” the report said.
Tabakovic said that inflation is expected to drop gradually due to tighter monetary conditions and government limits on some prices but added that fruit and vegetable prices are expected to rise because of the drought.
The NBS report also said that the current account deficit is expected to rise to 9.4 percent of the GDP.
Fuel imports totalled 3.1 billion Euro this year or 2.1 billion more than in the first half of 2021, the report said.
Tabakovic went on to say that she expects foreign direct investments to amount to 3.3 billion Euro this year and added that the country’s hard currency reserves stood at 15 billion Euro at the end of July.