Montenegro’s Deputy Prime Minister for Economic Affairs and Minister of Economic Development, Nik Đeljošaj, stated in a parliamentary hearing that inflation in the country is largely imported. He emphasized that supporting domestic production through the agro-budget and competitiveness programs is essential to mitigate inflation effects, suggesting that increased investment or borrowing for these measures would be worthwhile.
This year, around €3.5 million was allocated to support the food industry, with next year’s draft budget proposing €30 million for competitiveness programs. Efforts have also been made to increase the visibility of domestic products and reduce VAT on fruit and vegetables.
Opposition MPs and analysts noted that rising prices, particularly in housing and basic goods, disproportionately affect low- and middle-income households. Experts highlighted that while wages and pensions have increased, income inequality is growing, and real purchasing power is eroded by inflation. Food prices, for example, rose faster than the EU average, while electricity remained relatively stable. Analysts linked part of the inflation to government wage policies under the “Evropa sad 1” program, which increased employer labor costs without a corresponding rise in productivity.
Đeljošaj also announced that his ministry has prepared a draft law on strategic reserves, though it awaits consideration and inclusion in the government’s work program. Montenegro has not maintained formal commodity reserves since 2003, and previous measures such as margin controls on essential goods have been removed.
