economy
March 27, 2026
"It's a matter of weeks": An inevitable chain of price increases in Serbia, fuel prices are raising food prices
Although fuel prices have not yet dramatically increased, economic experts warn that a prolonged rise in oil prices will inevitably trigger a chain of price increases in Serbia – from transport to food, and consumers could feel it within a few weeks.
TL;DR
- Economic experts predict a chain reaction of price increases in Serbia due to prolonged rising oil prices caused by the Middle East crisis.
- The impact is expected to be felt by consumers within weeks, affecting transport and essential food items.
- While bakers and the Serbian president have stated that consumers should not worry for now, economists highlight that rising energy prices are key factors in cost-push inflation.
- An estimated 70% of citizens and a significant portion of the economy, particularly small and medium-sized enterprises, are expected to be significantly affected.
- Unlike monetary changes, cost-push inflation has a very short time lag, meaning the effects will be felt almost immediately.
- Even if the conflict ends, the disruption has already occurred, and prices tend to remain high due to downward price resistance.
- Fuel is a component in almost every process, from agriculture to final delivery, and its increased cost will cumulatively affect prices.
- Potential shortages and farmers prioritizing reselling fuel over essential agricultural work could have further detrimental effects.