NBS Targets Inflation Until End-2026 at Around 3%

The inflation target of the National Bank of Serbia (NBS) until the end of 2026 is 3% with a tolerance band of ±1.5 percentage points, as announced in the National Bank of Serbia’s Memorandum on Inflation Targets until 2026.

– The inflation target for the period 2024–2026 is still slightly above the quantitative definition of price stability and the inflation targets of advanced economies (2.0% or 2.5%). The defined inflation target reflects the assessment that the process of nominal, real and structural convergence to the European Union will not be completed until 2026 – the document says.

It is added that it should be borne in mind that the inflation target is a medium-term objective, i.e. that actual inflation may deviate from the target in the short run due to exogenous shocks.

The National Bank of Serbia will allow temporary deviations from the target if bringing inflation back to the target in the short run warrants monetary policy changes that would trigger additional disruption to macroeconomic processes.

– This relates to sudden changes in primary commodity prices. In cooperation with the Government, the National Bank of Serbia may change the targets set for inflation. Such changes will be made in exceptional circumstances only and will be explained by the National Bank of Serbia – the NBS says.

The National Bank of Serbia’s Memorandum on Inflation Targets until 2026, determined in cooperation with the Government of Serbia, was adopted at the session of the Executive Board of that financial institution on December 7.

Narodna banka Srbije Beograd

Vlada Republike Srbije

National Bank of Serbia

NBS

Government of Serbia

target inflation

NBS Memorandum on Inflation Targets until 2026