As the Government’s “Limited Prices” initiative is set to take effect, consumers in Montenegro are already facing a new price increase — this time for eggs. Luka Jokić from the Association of Egg Producers announced that egg prices will rise by 30 to 50 cents per carton, putting additional pressure on household budgets.
Economist Mirza Krnić from the Preokret Movement told Pobjeda that these trends show that the Europe Now 1 and Europe Now 2 reforms are revealing their full potential in a negative way. He argues that measures once presented as a solution for improving living standards have instead contributed to inflation and the weakening of the healthcare and pension systems, while price controls have failed to deliver meaningful results.
Krnić said that wage increases have been completely offset by inflation, while the country continues to face a high inflation rate of 4.9 percent as of September. He noted that although egg prices have not risen significantly in recent years, the inflation rate for dairy and egg products reached almost 50 percent in 2022. According to him, rising prices of basic goods typically trigger increases in other categories as well, making inflation trends concerning.
He criticized the Government’s repeated attempts to cap prices through the “Stop Inflation” campaigns, saying they did not bring genuine relief to citizens and served more as a public relations tool. He emphasized that Montenegro needs to establish commodity reserves, strengthen domestic production and entrepreneurship, and prevent monopolistic behavior among importers and large market players.
Krnić also recalled that Prime Minister Milojko Spajić had repeatedly promised the creation of commodity reserves but failed to deliver. He argued that the main problem is that production has not been expanded to absorb the additional money circulating in the economy, leading to further inflation. The solution, he said, is to boost production and support entrepreneurship.
The Government recently adopted a Decision on Temporary Measures for Limiting Prices of Products of Special Importance, introducing controls on basic food and hygiene products. The measure will be in effect until 31 March 2026. Fruit and vegetables are excluded after producers warned that previous price caps had harmed their business.
The decision covers essential items such as flour, sugar, sunflower oil, salt, milk, cheese, yogurt, meat products, rice, pasta, canned fish and meats, marmalade, juices, potatoes, and household basics such as detergents, soap, toothpaste, diapers, and sanitary products. Price limits are set by capping wholesale and retail margins at 5 and 7 percent respectively, with some products capped at up to 15 percent. Small retailers under 600 square meters are exempt.
The Government explained that the aim of these measures is to protect living standards amid rising costs and inflationary pressure while preventing unjustified price increases.
According to Monstat, annual inflation in October reached 4.8 percent, while monthly consumer prices fell by 0.2 percent. The biggest contributors to the monthly decline were lower prices in accommodation services, fruit, dairy products, and air transport. From January to October, consumer prices were 3.9 percent higher compared to the same period last year. In October, prices increased the most in clothing and footwear, and in housing, water, electricity, gas, and other fuels, while declines were noted in food, beverages, recreation, culture, and several other categories.
