The annual inflation rate in Serbia rose to 4.9% in July 2025 from 4.6% in June, defying expectations of a slight easing to 4.5%. This is the highest level since April 2024, driven mainly by higher inflation in food and non-alcoholic beverages (8.1% vs. 7.4% in June) and housing and utilities (3.6% vs. 3.4%). Price growth also accelerated for health (5.4% vs. 5%) and recreation and culture (4.1% vs. 3.9%). Conversely, downward pressure came from a continued decline in transport costs, which fell 1.1%, following a 1.2% drop in June. Inflation also eased for clothing and footwear (4.5% vs. 4.9%), furnishings, household equipment, and routine maintenance (4.8% vs. 4.9%), as well as communication (1.3% vs. 2.1%). On a monthly basis, consumer prices increased 0.6%, above market expectations of a 0.36% gain, but easing from a 0.9% rise in June.