Serbia Inflation Slows More than Expected

The annual inflation rate in Serbia edged up to 2.5% in February 2026, from 2.4% in January, which had marked the lowest reading since March 2021, as the Statistical Office of the Republic of Serbia introduced changes to the CPI methodology, including the adoption of the COICOP classification. Consumer prices continued to decline for food and non-alcoholic beverages (-2.3% vs. -1.0% in January), while prices for transport also fell (-0.2% vs. -0.4%). Meanwhile, inflation eased for alcoholic beverages, tobacco, and narcotics (4.3% vs. 6.3%) and remained unchanged for communication (1.1% vs. 1.1%). On the other hand, price pressures strengthened for health (6.3% vs. 5.7%) and housing and utilities (9.1% vs. 8.5%). On a monthly basis, the CPI rose by 0.5% in February.

The annual inflation rate in Serbia slowed to 2.4% in January 2026, compared to market expectations and the prior month's 2.7%. This marked the lowest reading since March 2021, with the Statistical Office of the Republic of Serbia starting to use the new International Classification of Individual Consumption by Purpose (COICOP) version 2 (COICOP2018) in the calculation of the Consumer Price Index (CPI) and the internationally comparable Harmonized Index of Consumer Prices (HICP). Consumer deflation continued for food and non-alcoholic beverages (-1% vs -0.9% in December), and prices slipped for transport (-0.4% vs 1.9%). Moreover, costs moderated for information and communication (1.1% vs 2.3%), health (5.7% vs 5.9%), and alcoholic beverages, tobacco, and narcotics (6.3% vs 6.4%). In contrast, prices increased at a faster pace for housing and utilities (8.5% vs 7.5%). On a monthly basis, consumer prices edged up to 0.3% from 0.1% in December 2025, matching market expectations.

The annual inflation rate in Serbia edged down to 2.7% in December 2025 from 2.8% in the previous month. This marked the lowest reading since March 2021, mainly driven by ongoing deflation for food and non-alcoholic beverages, which dropped further by 0.9%, after a 0.7% fall in November. Additionally, inflation softened for clothing and footwear (2.2% vs 2.9%), furnishings, household equipment and maintenance (0.3% vs 0.7%), and transport (1.9% vs 2.6%). On the other hand, prices increased at a faster rate for alcoholic beverages, tobacco and narcotics (6.4% vs 4.9%) and recreational and cultural services (2.7% vs 2.4%). On a monthly basis, consumer prices rose modestly by 0.1% in December, following a 0.2% gain in the preceding period.