National Bank of Serbia (NBS) Governor Dejan Soskic said Sunday that inflation in Serbia should start to decline in July, and that the rate will depend on food prices on the domestic and international market, energy prices and government-controlled prices.

"In terms of statistics, a drop in year-to-year inflation can realistically be expected only in the second half of the year, since we had low monthly inflation rates in the first part of 2010," Soskic noted in an interview for Tanjug.

He specified that year-to-year inflation will drop in those months when surges in food prices were recorded - July, August and until the end of the year.

Soskic reminded that the target inflation range for the end of the year is 4.5 percent, plus or minus 1.5 percent.

"This is a range we would consider acceptable, and if inflation at the end of the year stays inside that range, we could say that our monetary and fiscal policy met the goal for this year," Soskic stressed.

He assessed that the central bank's measures for suppressing inflation are already showing results, pointing out that the effect of some measures cannot be seen until a few months have passed.