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Mirjana Lučić And Vladan Ilić, General Managers At Saint-Gobain

Anniversary Year

Saint-Gobain is a world leader in modern and sustainable construction that designs, produces and distributes materials and services for the construction sector and industrial...

UniCredit Bank Serbia

Why It’s Important To Save: The Future Is Certainty

There’s no need to talk about the fact that it’s important to find a certain degree of stability and certainty under the current circumstances...

Nemanja Bućinac, Retail Leasing Director, MPC Properties

Changing With The Times

UŠĆE Shopping Center has been the market leader for over 13 years. In order to retain this position, UŠĆE is preparing for a major...

Stylianos Tsoktouridis, Director, Alumil Yu Industry A.d.

Superior Customised Solutions

Alumil is one of the largest brands producing windows and doors, with 12 factories across Europe, including one in Serbia. The company continues, year-on-year,...

Sanja Stanimirović, CEO, Testeral

Demanding Markets Develop Quality

Testeral exports 95 per cent of its production to the markets of Western Europe and America, and one of the company’s goals is to...

Nebojša Savić Ph.D., Professor Of Economics And Competitiveness At The Singidunum University Faculty Of Economics, Finance And Administration (FEFA)

The Dragon Of Inflation Was Lurking Around The Corner

Unlike some previous inflationary waves, the current inflation occurred under the strong influence of problems on the supply side. This huge pressure on costs found fertile ground in the most developed economies, into which massive amounts of money had already been pumped

The phenomenon of inflation has returned to the world’s economy after a break of almost half a century. It hit the world economy at the global level in 2021, and is linked to both the covid-19 pandemic and unresolved issues that have persisted since the global financial crisis of 2008. The struggle against the crisis was focused on the stabilising of the financial system and inflation was low. The struggle to overcome the crisis boiled down to pumping in large amounts of money. The global financial system survived that crisis, but debts grew, and the dragon of inflation was lurking around the corner. In contrast to the previous major inflationary wave, which hit the U.S. in the 1960s and ‘70s (known as The Great Inflation), today’s inflation is of a different character.

Inflation can take three forms: cost inflation, demand inflation and structural inflation. The Great Inflation of the ‘60s and ‘70s, with the abandoning of the Bretton Woods agreement, and alongside the energy crisis, was primarily a case of demand inflation, with elements of cost inflation.

The current inflation under covid-19 differs completely from the aforementioned inflation, because it emerged under the strong influence of supply-side problems due to the pandemic disrupting supply chains. With the gradual re-opening during 2021, shortages of numerous inputs and energy sources occurred, which caused a sharp rise in prices, of everything from microchips for cars and electronics to energy sources. This huge pressure on costs found fertile ground in the most developed economies, into which huge amounts of money have already been pumped continuously since the crisis of 2008, and particularly during the pandemic of 2020 and 2021.

The leading central banks still aren’t seeking to raise interest rates, with the exception of the Bank Of England, as they don’t want to slow down growth in the process of recovering from 2021’s gdp falls

This all led to inflation rising in the most developed economies, which was unthinkable during the last half a century and which start from around 7%, for example in the United States and Germany, and which have an upward trajectory. Meanwhile, the leading central banks still aren’t seeking to raise interest rates, with the exception of the Bank of England, because they don’t want to slow down growth in the process of recovering from the falling GDP experienced during 2021.

Serbia’s inflation rate in 2021 was 7.9%, expressed in year-on-year terms, and 4.0% as an annual average rate. Three-quarters of this hike in prices relates to food and energy prices. The high year-on-year growth in food prices is a consequence of several factors: rising food prices worldwide, drought and higher production costs, as well as these prices being extremely low in 2020, due to falling demand. Inflation in Serbia has a high external component. As year-on-year core inflation stood at 3.5%, thanks to a stable exchange rate, and as inflation expectations are anchored at around 3%, inflation can be expected to most likely continue to fluctuate at around the level from December 2021 during the first quarter of this year, while a gradual decline is expected from the second quarter, with a return to the targeted limits during the third quarter of 2022.

H.E. Mohamed Abdullahi Ahmed, Ambassador Of Somalia To Serbia

Somalia Is Potentially A Rich Country

Despite the fact that Somalia has experienced a variety of situations over the past 31 years, including civil wars, famine, and international terrorism that...

Comment by Zoran Panovic

Ana, Again

Of course, it’s absurd that, on the day when the gay prime minister received her third mandate, Serbian President Aleksandar Vučić simultaneously cancelled the...

Bojan Klačar, Executive Director Of The Centre For Free Elections And Democracy (CESID)

Open Doors

The return of the opposition to the parliament will lead to numerous changes. The national assembly will once again be pluralistic, with MPS that...

Despot Kovačević, Assistant Professor/Lecturer At The University Of Belgrade Faculty Of Political Sciences

Chance For The Opposition To Profile Itself Among Voters

The post-election dynamics of relations within the opposition showed that a debate will be led on the topic of genuine opposition to the regime...

Giorgia Meloni Claims Victory To Become Italy’s First Female Prime Minister

According to the results published after the polls closed, the right-wing coalition led by the Brothers of Italy party,...

Total Revenues Of Video Game Industry In Serbia Amounted To 125 Million Euros In 2021

The video game industry in Serbia employs 3,000 people who work in 130 gaming companies, with total revenues last...

Leaders Of 44 Countries Invited To The First Meeting Of The European Political Community

Representatives of 44 countries have been invited to the first meeting of the European political community, which will be...

Serbian Flag In Times Square

The flag of Serbia with a message about friendship between Serbia and the United States, as well as an...

Vučić At The UN: What Is The Difference Between The Territorial Integrity Of Ukraine And Serbia?

What is the difference between the territorial integrity of Ukraine and the territorial integrity of Serbia, which was violated...

Giorgia Meloni Claims Victory To Become Italy’s First Female Prime Minister

According to the results published after the polls closed, the right-wing coalition led by the Brothers of Italy party,...

Total Revenues Of Video Game Industry In Serbia Amounted To 125 Million Euros In 2021

The video game industry in Serbia employs 3,000 people who work in 130 gaming companies, with total revenues last...

Leaders Of 44 Countries Invited To The First Meeting Of The European Political Community

Representatives of 44 countries have been invited to the first meeting of the European political community, which will be...

Serbian Flag In Times Square

The flag of Serbia with a message about friendship between Serbia and the United States, as well as an...

Vučić At The UN: What Is The Difference Between The Territorial Integrity Of Ukraine And Serbia?

What is the difference between the territorial integrity of Ukraine and the territorial integrity of Serbia, which was violated...

Giorgia Meloni Claims Victory To Become Italy’s First Female Prime Minister

According to the results published after the polls closed, the right-wing coalition led by the Brothers of Italy party,...

Total Revenues Of Video Game Industry In Serbia Amounted To 125 Million Euros In 2021

The video game industry in Serbia employs 3,000 people who work in 130 gaming companies, with total revenues last...

Leaders Of 44 Countries Invited To The First Meeting Of The European Political Community

Representatives of 44 countries have been invited to the first meeting of the European political community, which will be...

Serbian Flag In Times Square

The flag of Serbia with a message about friendship between Serbia and the United States, as well as an...

Vučić At The UN: What Is The Difference Between The Territorial Integrity Of Ukraine And Serbia?

What is the difference between the territorial integrity of Ukraine and the territorial integrity of Serbia, which was violated...
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