After the expiration of the Montenegrin Government’s “Limited Prices” campaign, aimed at capping food prices, Deputy Prime Minister and Minister of Economic Development Nik Đeljošaj announced new measures would be introduced by mid-May. However, nearly two months later, no action has been taken. The Ministry has repeatedly stated that the previous price control measures helped curb inflation, but no official results have been publicly released.
Meanwhile, food prices in stores have started to rise again. According to Monstat, the annual inflation rate reached 4.2% in June. The most significant contributors were increases in meat (4.5%), hospitality services (11.7%), housing rents (20.1%), pharmaceuticals (15.2%), fruit (19.2%), oils and fats (15.5%), vegetables (6.1%), water supply (24.1%), housing maintenance (15.9%), dairy (1.8%), bread and cereals (2.7%), and newspapers and magazines (33.9%). Monthly inflation from May to June rose by 0.4%, driven mainly by increased prices for fruit (8.1%), accommodation (5.6%), and air travel (12.8%).
Economic analyst Mirza Mulešković noted that such inflation was expected following administrative wage increases earlier this year. He pointed out that, similar to 2022, Montenegro’s wage policies have diverged from the EU average, leading to a domestic inflation rate twice as high as the EU’s 2%.
Mulešković emphasized that, aside from a few catalog-based price reductions, no effective long-term anti-inflation measures have been implemented in recent years. He argued that short-term actions like “Limited Prices” might offer temporary relief to vulnerable groups, but lasting results require support for domestic production and structural reforms. Instead, the government introduced reforms that increased inflation—such as raising wages, VAT, and excise taxes.
He added that there seems to be little political will to stabilize prices, as public finances depend heavily on consumption-based revenue. Mulešković expects the summer tourism season to further drive up prices and warned that rising living costs continue to erode the effect of wage increases from the “Europe Now” programs.
According to the Union of Free Trade Unions of Montenegro (USSCG), the average union-calculated consumer basket has increased by €140 compared to the same period last year and now totals €2,010 for a four-member household. Food accounts for the largest portion—€630—which rose by 2.44% compared to the previous quarter.
USSCG stated that the “Limited Prices” campaign did help reduce costs for many essential items, but the effects were short-lived. They urged the government to consider reintroducing price controls for basic food items and to reactivate other protection mechanisms. They also stressed the need to rebuild state reserves of essential goods to avoid reliance on imports in future crises.
Finally, USSCG concluded that only coordinated efforts involving all stakeholders can halt the price surges that have diminished the benefits of wage increases over the past two years.
