Central Bank of BiH: Expected inflation for this year 7.7 percent

(Patria) - The Central Bank (CB) of Bosnia and Herzegovina, in its latest projections, forecasts inflation of 7.7 percent, which is 1.6 percentage points higher compared to the projection from November 2022.

The main reason for the upward revision is the continued rise in food prices and core inflation. Already from the second quarter, we expect a gradual weakening of inflationary pressures by the end of the projection period, the CBBiH announced.

The projection for economic activity growth in Bosnia and Herzegovina in the current year has been revised slightly upwards, to the level of 1.6 percent, although it still indicates a significant slowdown in growth compared to the multi-year average.

The CBBiH further states that real economic growth in the next year is currently estimated at 3.2 percent.

"We continue to emphasize that the economy is not in a classic business cycle, and that the estimated values of real GDP, its components, and other macroeconomic variables are exposed to an extremely high degree of uncertainty," the CBBiH stated.