Serbia’s 1-year ahead inflation expectations dropped to 4.2% from 4.5% in January, remaining in the central bank’s target range of 1.5-4.5%. The bank noted further that two- and three-year ahead inflation expectations of both the financial and corporate sectors are lower than their short-term expectations, signaling their anticipation of easing inflationary pressures in the period ahead and of inflation’s gradual return within the target band.