"The Central Bank of Bosnia and Herzegovina points to positive expectations of inflation trends for 2024 and 2025, and it is considered that a further drop in inflation will affect the improvement of the economic situation.

The expected aggregated inflation for the year that began is 5.8%, which implies a slight decline compared to 2023, when survey participants, according to the September survey, predicted an average inflation of 7.9%.

Inflation expectations in the first round for 2025 amount to 5.5%, which leads to the conclusion that a further drop in inflation is expected, given that inflationary pressures in the past year were far above the multi-year average.

Inflation as a basic determinant of decision-making.

It is evident, states the Central Bank of Bosnia and Herzegovina, that inflation trends are influenced by internal and external factors, which results in differences in expected inflation, not only in the country itself, but also between countries in general.

Inflation as a macroeconomic indicator continues to represent the basic determinant of decision-making by consumers, financial institutions, the state and other participants in the macroeconomic system.

In this regard, the Central Bank of Bosnia and Herzegovina, as an important segment of the communication strategy, regularly conducts a survey on inflationary expectations, with the aim of analyzing and continuously monitoring the inflationary expectations of economic entities. The survey participants are representatives of the financial sector, commercial banks and insurance companies."