producer prices

Serbia’s Construction Costs Rise Despite Low Consumer Inflation

Serbia’s consumer inflation slowed to 1.9% in July, but price pressures across the production and construction sectors remained significantly higher, creating a wider gap between household inflation and the costs faced by businesses and investors. Industrial producer prices for goods sold on the domestic market were 7.0% higher year on year in June, while prices of construction materials and components increased 10.8%. Import-price inflation also accelerated to 3.8%. The divergence comes as Serbia enters a major infrastructure and investment cycle,…