Skopje, 13 July 2022 (MIA) – The National Bank has further increased the interest rate of bills by 0.5 points to 2.5 percent, bearing in mind recent inflation trends. In the January-June period, the annual inflation rate stands at 10 percent on average, which is higher than latest projections. Domestic inflation results primarily from the pressure from imported prices of food and energy, which are rising more than expected. These pressures swiftly spill over to prices of other products and services and stir inflation, the central bank said in a press release. It adds that stabilization of prices is expected in the second half of 2022, considering downward projections of oil and food prices, but uncertainties are highlighted due to the war in Ukraine while not neglecting risks related to the ongoing COVID-19 pandemic. “In such circumstances, the need for precautionary domestic policies is required. The bank is carefully monitoring macroeconomic data and related risks, and will continue to act by using all instruments at disposal in order to maintain the exchange rate stability and mid-term price stability,” reads the press release.