Serbian inflation expectations rise to 3%
According to the results of the Serbian Central Bank's May survey, one-year and two-year ahead inflation expectations of the financial and corporate sectors continued to move within the target tolerance band. The NBS reports that one-year ahead inflation expectations by the financial sector in May was for 3.0 percent inflation, up from the 2.6 percent reported in April. Two-year ahead inflation expectations remained unchanged in May. Last week, the country's BB rating was confirmed by S&P, which described Serbia's outlook as positive. It wrote that Serbia is enjoying solid economic expansion and praised its prudent fiscal stance, as the government is implementing reforms supported by the policy coordination arrangements with IMF and central bank NBS. It said strong export growth was supporting the economy against an apparent slowdown in the Eurozone.