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The objective of this research is to analyze the impact of inflation on economic growth in Bosnia and Herzegovina (BiH) from 2017 to 2023. Utilizing data on annual inflation rates and GDP figures, the study employs a correlational-regression analysis conducted with IBM SPSS software to examine the relationship between inflation and GDP growth. The results indicate a significant fluctuation in inflation rates, particularly with a dramatic spike in 2022, and a consistent upward trend in GDP growth, except for a minor decline in 2020 attributed to the COVID-19 pandemic. The regression analysis suggests that while high inflation in 2022 coincided with substantial GDP growth, the overall impact of inflation on economic growth appears complex and multifaceted, influenced by other underlying economic factors. The conclusion drawn from this study is that inflation in BiH has a nuanced relationship with economic growth, necessitating a balanced approach in monetary and fiscal policies to sustain economic stability and growth.

Agricultural sector in the EU functions under strong influence of the CAP. EU finances the measures to support production of agricultural products and food. CAP is founded on the goals of ensuring price stability. Correlation and regression analysis have largely confirmed the given hypotheses. General price levels in EU, as well as the prices of agricultural products have been stable, as shown by the respective trend line equations. Correlation and regression analysis of support for agricultural production and prices of agricultural products indicate a moderate correlation level, i.e. the support contributes to price stability. Correlation analysis confirms the influence of prices of industrial products on the prices of agricultural products. Results of price movement analysis of agricultural products and foods on one hand, and independent variables affecting prices on the other, show that CAP objectives have been mainly accomplished. Thus, interventionism in agriculture brings economic effects and justifies the CAP measures.

The European Union is the most complex and by any aspect the most unique example of a regional economic integration. Its origin, evolution and survival are based on a common legislative and institutional framework. The so-called common policies implemented in a number of economic and non-economic areas are particularly distinctive. Most of them are implemented on two levels: national and communal. The only common policy that is fully implemented at the European Union level is the Community Agrarian Policy (CAP), whereas the agriculture has the highest expenditure in the communal budget. The function of CAP is primarily economic as its goals are strictly related to economic issues: price stability of agricultural products, productivity growth, higher wages for the farmers, etc. The CAP strengthens the Union’s social cohesion, which is of utmost importance in times of constant crises, BREXIT and other extreme instabilities. For this reason, the CAP has been in the processes of continuous reforms (MacShary, Mansholt and those of recent times) for decades, in order to increase its efficiency and justify enormous financial investments. The CAP results depend on the achievement of preset objectives and the exchange of agricultural products and food that the European Union generates globally. It has been demonstrated that the CAP is a significant common policy, both in achieving economic goals and in the sphere of strengthening communal cohesion.

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