FX.co ★ Bosnia and Herzegovina Inflation Slows to Four-Month Low

In December, Bosnia and Herzegovina witnessed a decrease in its annual inflation rate, registering at 4.1%—marking the lowest since August. This represents a slight reduction from November's rate of 4.4%. The deceleration in inflation was primarily attributed to a slower growth rate in the prices of food and non-alcoholic beverages, which declined to 5.3% from 6.0%, and health services, which eased to 4.7% from 5.0%. Additionally, transport prices saw a decline, shifting from a 1.4% increase to a slight decrease of 0.2%. Conversely, inflation saw an uptick in several sectors: housing and utilities increased to 7.3% from 6.6%, recreation and culture to 4.9% from 4.8%, alcoholic beverages and tobacco to 4.1% from 3.9%, furnishings and household equipment to 2.4% from 1.8%, and other goods and services to 3.3% from 2.9%. Although the prices for clothing and footwear continued their downward trend, they declined at a reduced rate of 7.8% compared to the previous 8.1%. Month-on-month, consumer prices saw a modest rise of 0.1% in December, following the 0.5% increase recorded in November.