SARAJEVO, March 27 (Xinhua) -- The Central Bank of Bosnia and Herzegovina (CBBH) expects the country's overall inflation to accelerate to around 3.9 percent in the second quarter of 2026, driven largely by rising energy costs and their spillover effects.
In its latest assessment released on Friday, the bank said inflationary pressures remain persistent, with overall inflation estimated at 3.5 percent in the first quarter and core inflation at 4.2 percent. Prices for housing, energy and utilities rose by 7.7 percent in the first two months of the year, serving as key contributors.
While the short-term economic outlook remains relatively stable, the CBBH warned that downside risks could increase in the coming quarters due to an uncertain international environment, and economic growth projections for 2026 may be revised downward.
The bank cautioned that geopolitical tensions, particularly in the Middle East, along with weaker growth prospects in the eurozone, could further affect the country through trade and financial channels.
