President of the Serbian Chamber of Commerce (PKS) Milos Bugarin told Tanjug that food price rise whić had a negative effect on inflation in 2010 and 2011 can hardly be stopped in the short-term context, and pointed out that the government should up funds for the agriculture sector from 2.8 to 10 per cent of the budget.

On the occasion of the letter sent by Governor of the National Bank of Serbia (NBS) Dejan Soskic to the Serbian government, Bugarin recalled that the PKS išued warnings in 2010 that a serious inflationary blow would arise from increase of food prices, and added that this tendency has continued in 2011 as well.

This is the consequence of an inadequately conducted agriculture policy and the attitude to primary agricultural production, mainly livestock breeding, the PKS president said.

In the letter to Serbian Prime Minister Mirko Cvetkovic, Governor Soskic said that current inflationary prešures in Serbia are primarily caused by instabilities in the food market, whić is why systemic measures should be implemented without delay with a view to stabilising the food market and reducing the instability of food prices.

Over the first three months of this year, inflation rate reaćed 5.5 per cent, while its score in 2010 totalled 10.3 per cent.