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Serbia: March inflation 1.2%; annual rate 2.8%

Inflation in Serbia in March was 1.2%, while the annual inflation rate is 2.8%, the Statistical Office said on Monday.

The price of goods went up 1.5% in March, while the price of services rose 0.2%, Statistical Office Director Dragan Vukmirović said. The cost of living in Serbia increased by 1.6% in March compared to February, while an increase of 3% has been registered since the beginning of the year. The inter-annual basic inflation rate reached 7% in March, which is above the upper limit of 6% projected for this year, while the inter-annual inflation rate in the same month was 11.8%, National Bank of Serbia Governor Radovan Jelašić said, also on Monday.

Jelašić warned that a high inflation rate and a foreign trade deficit remained Serbia’s major economic problems. The NBS governor underlined that predicted inflation rate acceleration was in progress, but that the 2008 projected basic inflation of between three and 6% would be achieved. He pointed out that the 6.8% increase of state-controlled prices was the main factor behind the increase of the inter-annual (March 2007-March 2008) inflation rate. (B92)