Serbia Producer Inflation Eases in October

Serbia’s producer prices fell by 0.3% year-on-year in January 2026, reversing a 1.7% rise in December. It marked the first producer deflation since May 2025, as prices slipped for manufacturing (-1.3% vs 0.8% in December), particularly manufacture of chemicals and chemical products (-1.2% vs 2.5%) and machinery and equipment nec (-0.2% vs 1.8%). Overall producer deflation was also weighed down by slowdowns in prices of electricity, gas, steam, and air-conditioning supply (3.9% vs 4%) and water supply, sewerage, waste management, and remediation activities (5.2% vs 21.4%). In addition, deflation worsened for mining and quarrying (-8.7% vs -6.7%). On a monthly basis, consumer prices declined 0.2% in January, slowing from a 0.4% fall in the previous month.

Serbia’s producer prices rose by 1.7% year-on-year in December 2025, easing from a ten-month high of 2.1% increase in the previous month. Main downward pressure came from an ongoing deflation in mining and quarrying, which dropped by 6.7%, slipping further from a 5.8% fall in November. At the same time, producer inflation slowed in the manufacturing sector (0.8% vs 1.3%), mainly driven by lower costs for the manufacture of coke and refined petroleum products and other transport equipment. On the other hand, prices continued to rise sharply for water supply; sewerage, waste management & remediation activities (21.4% vs 21.2%), while growth remained steady for electricity, gas, steam and air condition supply (at 4%). On a monthly basis, producer prices declined by 0.4% in December, the first drop in four months and reversing a 0.7% gain in the preceding period.

Serbia's producer price inflation rose 1.5% year-on-year in October 2025, down from September’s eight-month high of 1.8%. This marked the fifth consecutive month of producer price growth since February. Prices rose at a softer rate for manufacturing (0.6% vs 1.7% in September), while costs dropped further for mining & quarrying (-5.4% vs -3.4%). In contrast, prices rose faster for electricity, gas, steam and air condition supply (3.9% vs 1.2%) and water supply; sewerage, waste management & remediation activities (20.2% vs 19.9%). On a monthly basis, producer prices advanced by 0.5% in October, following a 0.2% increase in the previous month.