Professor of the Faculty of Economics in Belgrade, Zoran Bogetić, said today that prices in Serbia are under the impact of world inflation and that their growth is not only a consequence of domestic “troubles”, but that it would not be good for the economy to limit themselves in the long run.
Bogetic told Beta that retailers estimate that food prices in Serbia have risen by about 30 percent since the beginning of the year, which is a “serious blow to the citizens’ budget.”
In Serbia, in October this year, monthly inflation was 0.9 percent, and year-on-year inflation was 6.6 percent.
“The prices of logistics, energy, wheat have jumped in the world … and the inflationary shock has been dramatic since the beginning of the year. It would be very speculative to predict how the upward trend in prices will move,” Bogetic said.
He added that it would be wrong for the authorities to “run in” and fix food prices as they were more than ten years ago, as well as that limiting the growth of “Sava” bread prices is a forced move and is just a drop in the ocean of problems.
The decision of the authorities to adopt such a measure, as he said, is understandable for the people, but that there is a great risk of pressure to fix the prices of other products, which would not be good for the economy.
Bogetic said that the principles of the free market are increasingly being ignored and that state interventionism is becoming more common in the world.
He assessed that limiting the price of “Sava” bread to six months is a long period and showing good will to mitigate the impact on the standard of living of citizens, but that even the state cannot long withstand this interventionist measure of significant regression of T-500 flour prices. delivers from state commodity reserves at 30 dinars per kilogram, although the market price is more than 40 dinars.
“In Serbia, state interventionism in the price sector has become part of the tradition, so citizens are used to it and now expect it, but such policies are contrary to Serbia’s decision on EU integration,” Bogetic said.