FX.co ★ Bosnia and Herzegovina Inflation Accelerates to Two-Year High

Bosnia and Herzegovina experienced a rise in its annual inflation rate to 4.8% in July 2025, marking the highest level since June 2023. This increase is up from 4.6% recorded in the preceding month. The surge was primarily propelled by accelerated price hikes in sectors such as housing and utilities (1.4% compared to 1.0%), as well as restaurants and hotels (7.5% compared to 7.2%), and miscellaneous goods and services (3.8% compared to 3.4%). There was also a moderation in the decline of prices for clothing and footwear (-5.3% compared to -7.5%) and transport (-3.2% compared to -4.3%). Conversely, a slower pace of price increases was observed in areas including alcoholic beverages and tobacco (3.7% compared to 3.8%), furnishings and household equipment (1.0% compared to 1.1%), and health (6.1% compared to 6.4%). Meanwhile, inflation for food and non-alcoholic beverages remained unchanged at 10.8% in July. On a month-to-month basis, consumer prices edged up by 0.2% in July, following a 0.3% increase in June.