<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In the Republic of Serbia, food accounts for a significant share in the consumer price index through which the inflation is statistically expressed. Therefore, in considerations of the basic factors of increase in the general price level, a special emphasis is placed on the specific features of the market of agricultural-food products. The aim of this research is to peruse the effect of the characteristics of the food market in Serbia on the inflation rate. High volatility of food prices is present because of the instability of this market, mainly due to seasonal fluctuations of supply and the effect of natural factors. Bearing in mind that the increase in food prices is the main determinant of the increase in the inflation rate, the indirect state control is very important so as to maintain price stability. Special importance is attached to the following instruments of economic policy: commodity reserves, storage policy, and fiscal and foreign trade policy.</p></abstract>

In the Republic of Serbia, food accounts for a significant share in the consumer price index through which the inflation is statistically expressed. Therefore, in considerations of the basic factors of increase in the general price level, a special emphasis is placed on the specific features of the market of agricultural-food products. The aim of this research is to peruse the effect of the characteristics of the food market in Serbia on the inflation rate. High volatility of food prices is present because of the instability of this market, mainly due to seasonal fluctuations of supply and the effect of natural factors. Bearing in mind that the increase in food prices is the main determinant of the increase in the inflation rate, the indirect state control is very important so as to maintain price stability. Special importance is attached to the following instruments of economic policy: commodity reserves, storage policy, and fiscal and foreign trade policy.

The Effect of Food Prices on Inflation in the Republic of Serbia

University of Union, Faculty for legal and business studies, Novi Sad

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"The Effect of Food Prices on Inflation in the Republic of Serbia"}

In the Republic of Serbia, food accounts for a significant share in the consumer price index through which the inflation is statistically expressed. Therefore,...

The Effect of Food Prices on Inflation in the Republic of Serbia

Published Online: May 15, 2015

Page range: 23 - 36

Received: Apr 02, 2015

Accepted: Apr 20, 2015

DOI: https://doi.org/10.1515/jcbtp-2015-0007

Keywords
food market, volatility of food prices, consumer price index, economic policy, inflation, the Republic of Serbia

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Effect of Food Prices on Inflation in the Republic of Serbia

Published Online: May 15, 2015

Page range: 23 - 36

Received: Apr 02, 2015

Accepted: Apr 20, 2015

DOI: https://doi.org/10.1515/jcbtp-2015-0007

Keywordsfood market, volatility of food prices, consumer price index, economic policy, inflation, the Republic of Serbia

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
food market, volatility of food prices, consumer price index, economic policy, inflation, the Republic of Serbia