AMIDŽIĆ: GOVERNMENT MEASURES LED TO DEFLATION IN SRPSKA

BANJA LUKA, OCTOBER 8 /SRNA/ - Minister of Finance and Treasury in the Council of Ministers Srđan Amidžić said today that Republika Srpska had not recorded a rise in prices in the previous period, but rather experienced deflation, or price stagnation, as a result of certain measures implemented by the Government of Republika Srpska.

Amidžić said that inflation in BiH, namely in Republika Srpska and the Federation of BiH, had been imported, given the negative balance between imports and exports.

"When prices rise in the eurozone, this automatically leads to an increase in the prices of all products you import," Amidžić told reporters in Banja Luka.

He stressed that the greatest inflationary pressure felt in this region came from the EU, adding that Europe's severing of ties with Russia had led to the loss of cheaper energy sources, which also affected product prices.

Amidžić said that Republika Srpska had managed to prevent a rise in inflation in the previous period through certain measures.

According to Amidžić, the Republika Srpska Ministry of Finance ensured continuous increases in the incomes of all budget-funded employees, which were higher than the rate of price growth, thereby preventing a decline in the population's purchasing power.

"This entails a responsible policy that comes at a cost. A stable financial system is needed to sustain such measures," Amidžić said.

He added that, besides banks, insurance companies were also a pillar of the financial system and should become increasingly important.