According to official statistics, March 2011 CPI inflation stood at 14.1 percent y-o-y, which is above the upper bound of the target of the National Bank of Serbia (NBS), as the targeted inflation for March 2011 was 5.6 ± 1.9 percent, the NBS released.

The NBS’s projection shows that inflation will peak in the second quarter of 2011, slowing thereafter and coming closer to the upper limit of the target tolerance band.

The statement reiterates that inflation is targeted at 4.5 ±1.5 percent for end-2011 and 4.0 ± 1.5 percent for end-2012.

March CPI inflation increased in March 2011 in relation to February 2011 by 2.6 percent on average. Consumer prices in March 2011 increased by 5.5 percent relative to December 2010, the Statistical Office of the Republic of Serbia published Tuesday.

Observed by main groups according to destination of consumption in March 2011 in relation to the previous month, the greatest increase of prices was noted in the groups of Alcoholic beverages and tobacco (5.8 percent), Food and non-alcoholic beverages (5.3 percent), Health (1.6 percent) and Hotels and Restaurants (0.7 percent), while in the group of Clothing and Footwear a decrease was noted (-0.3 percent).