Page 61 - bne IntelliNews Southeastern Europe Outlook 2025

4.2 Inflation & Monetary Policy – Bosnia & Herzegovina
The European Commission has projected that Bosnia’s headline inflation will slow down to 1.8% in 2025 from 2% in 2024.
“Headline inflation is projected to remain moderate over the forecast horizon, as price increases for imports, in particular energy, are expected to abate,” the EC said.
On the other hand, wage hikes could create upward pressure for headline inflation, according to the EC.
The IMF expects that in 2025 the inflation would reach 2%, down from 2.2% in 2024. On the other hand, the World Bank expects that inflation will decelerate to 0.4% by 2026, barring any further external shocks. Before that, inflation should fall to 2% in 2024 from 6.1% in 2023 and decelerate further to 0.9% in 2025.
The latest available statistics office data showed that consumer prices in Bosnia increased by 0.9% y/y in October, after growing by 0.8% y/y in September. Consumer prices in the country increased the most in the following sectors: restaurants and hotels (+6.7% y/y), alcoholic beverages and tobacco (+4.5% y/y), healthcare (4% y/y), other goods and services (+3.9% y/y) and food and non-alcoholic beverages (+3.4% y/y).
The clothing sector decreased by 7.9% y/y in October, while the housing sector moved down by 1.1% y/y. In the first ten months of 2024, consumer prices increased by 1.7% y/y.
61 SE Outlook 2025 www.intellinews.com