bne IntelliNews – Prices of agricultural products in Serbia jumped 29.1% YoY in December 2021
Producer prices for agricultural and fishery products in December 2021 increased by 29.1% on average compared to the same month of 2020, according to the Statistical Office of the Republic of Serbia. For the whole of 2021, prices increased by 20.8%.
Prices were pushed up by a combination of a drought in Serbia in the summer of 2021 and rising global energy prices, which in turn increased costs for agricultural producers, contributing to the rising inflation throughout the fall.
The sharp rise in food prices prompted the government to introduce a price cap for five staple foods in 2021, which was extended for another 90 days from February 8. The cap applies to certain types of sugar, flour, sunflower oil, pork and milk. .
The highest price increases over the whole year concern fruit (50.3%), industrial crops (46.1%) and cereals (26.8%).
In December, the largest year-on-year increases in producer prices were for cereals (38.7%), industrial crops (36.6%) and animals (24.3%).
Compared to November 2021, producer prices for agricultural and fishing products increased by 0.5% on average in December.
The largest monthly price increases were observed for cereals (1.3%) and animals (1.0%).
The National Bank of Serbia (SNB) said in January that inflation is expected to decrease from the second quarter of this year, with risks mainly related to developments in prices of primary agricultural products, global energy prices , the speed of the global economic recovery and the duration of problems in global supply chains.
Regarding domestic risks, inflation will largely depend on the outcome of the upcoming crop year, the central bank said. Assuming this is at the average level, this implies a slight increase in agricultural production compared to 2021, which was lower than average due to drought.