Prices in Serbia’s hospitality sector increased by 12.3% year-over-year (y/y) in February, following a 13.7% rise in January, according to data from the Statistical Office of Serbia released on Monday.
Among hospitality services, non-alcoholic beverages recorded the steepest annual price increase, rising 14.8%, followed by alcoholic drinks at 13.8%, food at 12.8%, and overnight stays at 6.8%.
On a monthly basis (m/m), alcoholic drinks saw the highest price growth in February, rising 1.4%, followed by food at 0.8% and non-alcoholic drinks at 0.6%. However, hotel overnight stays recorded a 4.1% decline compared to January. Overall, hospitality prices increased by just 0.1% month-over-month.
Tourism Sees Strong Growth
In a separate report, the Statistical Office noted that tourist arrivals in January 2025 increased by 16.1% y/y, while the number of overnight stays rose by 16.7%. Domestic tourists accounted for a 15.1% rise in overnight stays, while foreign tourists recorded an 18.6% increase compared to January 2024.
Inflationary Pressures Persist
Serbia’s annual inflation rate accelerated to 4.6% in January 2025, up from 4.3% in December 2024, surpassing market expectations of 4.3%. This marks the sharpest increase in consumer prices since April.
Key contributors to the inflationary uptick included higher costs for food and non-alcoholic beverages (4.1% vs. 4% in December), recreation and culture (4.2% vs. 4%), and transportation (3.5%), driven by rising energy and fuel prices in the region. Meanwhile, inflation in the hospitality sector eased slightly to 9.4%, down from 9.6% in December.
From the previous month, Serbia’s consumer prices jumped 9.6%, the highest monthly increase since October.
Economic Performance and Outlook
Serbia’s economy expanded by 3.3% year-on-year in the fourth quarter of 2024, aligning with preliminary estimates and matching the revised growth rate from the previous quarter. The growth was fueled by strong household consumption (+3.8%) and a modest rise in gross fixed investment (+1.2%), though government spending edged down by 0.3%.
Externally, exports grew by 3.1%, while imports surged at a faster pace of 7.1%. Sectoral performance varied significantly: the largest gains were recorded in wholesale and retail trade, transportation, accommodation, and food services (+6.0%), followed by information and communication (+9.8%), and industry, water supply, and waste management (+3.5%). In contrast, agriculture, forestry, and fishing contracted sharply by 7.6%, and construction declined by 5.5%.
On a seasonally adjusted quarterly basis, Serbia’s GDP rose by 1.1% in Q4 2024, building on a 0.5% increase in the third quarter.
Inflationary pressures and external trade dynamics will play a critical role in shaping Serbia’s financial landscape in the months ahead.
