According to our new central projection, we expect y-o-y inflation to temporarily move above the upper bound of the target tolerance band until mid-2022, when it will first return within the band and then go down to the lower part of the band by end-year, where it will remain in 2023 as well.
This will be facilitated by the expected waning of the effects of the above temporary factors, as well as the measures undertaken by the National Bank of Serbia so far towards curbing monetary accommodation.