Serbia Inflation Slows to Lowest Since 2021

The inflation rate in Serbia eased to 1.9% year-on-year in July 2026 from 2.7% in the previous month. The latest figure marked the weakest growth since March 2021, as prices grew at a softer pace for clothing and footwear (1.2% vs 1.4% in June), furnishings and household equipment (0.6% vs 0.8%), transportation (7.1% vs 7.7%), education (1.2% vs 1.8%), restaurants and hotels (6.1% vs 6.2%), insurance and financial services (3.9% vs 4.1%), and miscellaneous goods and services (0.7% vs 2.5%). At the same time, costs declined further for food and non-alcoholic beverages (-6.1% vs -3.7%). In contrast, prices increased for alcoholic beverages and tobacco (6.5% vs 5.2%), housing and utilities (9.7% vs 9.5%), recreation and culture (10.0% vs 9.7%), information and communication (1.9% vs 1.6%), and health (7.9% vs 7.6%). On a monthly basis, consumer prices fell by 0.2%, following a 0.2% rise in the preceding period.

The annual inflation rate in Serbia eased to 2.7% in June 2026 from 3.5% in the previous month, well below market expectations of 3.6%. This marked the lowest reading since February, as deflation in food and non-alcoholic beverages deepened (-3.7% vs -1.5% in May). Price growth also moderated for transport (7.7% vs 8.4%), clothing and footwear (1.4% vs 1.5%), restaurants and accommodation services (6.2% vs 6.4%), and education (1.8% vs 1.9%). In contrast, inflation accelerated for alcoholic beverages and tobacco (5.2% vs 4.9%), furnishings, household equipment and routine household maintenance (0.8% vs 0.2%), and recreation, sport and culture (9.7% vs 8.7%), while remaining unchanged for housing and utilities (9.5%), health (7.6%), and information and communication (1.6%). On a monthly basis, consumer prices eased to 0.2% from 0.3% in May and marking the smallest increase since December 2025.

The annual inflation rate in Serbia rose by 3.5% in May 2026 from 3.3% in the previous month. The latest figure marked the largest growth since August 2025, lifted by higher costs in housing utilities (9.5% vs 9.2% in April), health (7.6% vs 7.5%), transportation (8.4% vs 6.3%), information and communication (1.6% vs 1.3%), and miscellaneous goods and services (2% vs 1.6%). At the same time, costs recovered in furnishings and household equipment (0.2% vs -0.3%), while price growth remained steady in recreation and culture (8.7%), education (1.9%), and clothing and footwear (1.5%). Meanwhile, prices moderated in insurance and financial services (5.5% vs 6.4%), restaurants and hotels (6.4% vs 6.6%), and alcoholic beverages and tobacco (4.9% vs 6.1%), while costs declined further in food and non-alcoholic beverages (-1.5% vs -1.1%). On a monthly basis, consumer prices grew by 0.3% in May, easing from a 0.8% gain in the preceding period.