Serbian Prime Minister Mirko Cvetkovic expressed his belief Wednesday that the inflation in Serbia will drop to a single-digit figure by the end of 2011, and that it will approach the level targeted by the National Bank of Serbia (NBS).

"I believe that the forecasts given by NBS and occasionally by the government that inflation will drop to a single-digit figure, will be realized," Cvetkovic stated while visiting the works on the construction of a settlement on the location of Vojvoda Stepa Stepanovic barracks.

He said that salaries and pensions will in October be harmonized in accordance with the law, and the realistic purchasing power of the population. NBS's targeted inflation for 2011 is 4.5 plus minus 1.5 percent.