Montenegro’s annual inflation remained at 3.6% in June 2026, unchanged from May, as the start of the main tourism season increased accommodation and service prices while transport and household energy costs declined. Consumer prices rose 0.4% month on month, while the harmonised inflation rate used for comparison with the European Union also stood at 3.6%.
Accommodation Leads Monthly Price Growth
The largest monthly increase was recorded in restaurants and accommodation, where prices rose 3.3%. Accommodation services were the main driver within the category, with prices increasing 6.3% during June. Health costs rose 1.9%, while food and non-alcoholic beverages became 1.0% more expensive.
The figures show a shift in the composition of price pressures, with tourism-related services contributing more strongly while several energy- and goods-related categories recorded declines. Transport prices fell 0.2%, while the category covering housing, water, electricity, gas and other fuels decreased 0.1%. Clothing and footwear recorded a monthly decline of 2.2%.
Food Prices Affect Household Spending
Food and non-alcoholic beverages remained an important component of household costs after rising 1.0% in June.
Average net earnings increased 0.29% during the month, but real net earnings declined 0.10%, indicating that consumer prices increased slightly faster than take-home pay.
The combination of higher food prices and weaker real earnings affects household purchasing power, particularly among lower-income households.
Tourism Adds Seasonal Price Pressure
Montenegro’s tourism-dependent economy produces a distinct seasonal pattern in consumer prices. Hotels, apartments, restaurants and other tourism-related businesses can increase prices as foreign demand strengthens during the main season, particularly in coastal areas where supply is constrained during summer. These price movements affect both visitors and residents and can continue even when imported energy and goods inflation is weakening.
Limited Domestic Policy Tools
Montenegro’s use of the euro means it does not have an independent exchange rate or policy interest rate with which to respond directly to domestic inflation. Available policy instruments are therefore more indirect and include fiscal discipline, market competition, improvements in supply and the removal of administrative or infrastructure bottlenecks that increase business costs.
June’s figures did not show a renewed acute inflation shock. Annual inflation remained unchanged, while several goods categories recorded lower prices. At the same time, the data show that reducing inflation further may become more difficult as tourism-related services exert stronger seasonal pressure on consumer prices.
