NBS governor: Inflation to stay within target range of three percent

Presenting the August 2026 Inflation Report, Tabakovic noted that the economy avoided significant price shocks from the energy crisis and that inflation fell to 1.9 percent in July, primarily driven by a decline in fruit and vegetable prices.

The governor highlighted that, due to a surge in economic activity during the second quarter of the year, the NBS has revised its Gross Domestic Product (GDP) growth projection upward.

“The new projection is for GDP growth to reach 3.2 percent this year,” Tabakovic said.

In its May inflation report, the central bank had lowered its 2026 growth forecast to 3 percent, down from an original estimate of 3.5 percent.