Selimović at Summit in Bečići: Inflation is no longer a temporary phenomenon, but a long-term challenge

(Patria) - Governor of the Central Bank of Bosnia and Herzegovina, Jasmina Selimović, is participating in the XII Regional Summit of Governors, Ministers of Finance, and Directors of Tax Administrations of the region's countries, which is being held on June 13 and 14, 2025, in Bečići (Montenegro).

This year's summit theme, “Financial and Monetary Stability of the Region Amidst Continuously Weak Economic Growth in the Eurozone,” has brought together key decision-makers in monetary and fiscal policy, as well as representatives of international financial institutions.

Governor Selimović emphasized on this occasion that inflation is no longer a temporary or cyclical phenomenon, but a result of structural changes in the global economy: “In conditions of geopolitical fragmentation, supply chain disruptions, and energy transitions, inflation is becoming a more persistent challenge.

Even with a broader set of monetary instruments, the room for effective action is limited,” she stressed.

Commenting on inflation projections for Bosnia and Herzegovina, she stated that a gradual decrease in inflation is predicted for the period 2025–2027, but with risks of its increase:

“With the shortage of labor, strong wage growth, and changes in minimum income policy, the economy's ability to absorb external shocks without significant consequences for price stability is further complicated,” Selimović added.

She also emphasized the importance of strengthening regional cooperation, especially in the area of payment system integration and better coordination in crisis situations:

“Establishing common standards, such as joining the SEPA area and developing common solutions for cross-border payments, can significantly contribute to the resilience of our economies,” she concluded.