Montenegro’s consumer prices increased by 0.4% month on month in June 2026, while annual inflation reached 3.6%. Average inflation during the first six months of 2026 stood at 3.3% compared with the same period of 2025. The largest monthly price increase was recorded in restaurants and accommodation services, where prices rose 3.3% in June. Health-related prices increased by 1.9%, while food and non-alcoholic beverages recorded growth of 1%.
Accommodation and food categories drive price growth
The main contributors to June inflation included accommodation services, meat, dairy products, eggs, restaurants, cafes, dental services, air transport, fruit and vegetables. At the same time, several consumer categories recorded monthly declines. Clothing and footwear prices decreased by 2.2%, while furnishings prices fell by 0.5%. Transport prices declined by 0.2%, and housing, utilities and energy costs decreased by 0.1%.
Tourism-related businesses face higher operating costs
The latest inflation structure reflects the impact of the tourism sector entering the peak season, with stronger price increases recorded in accommodation and hospitality-related services. Hotels and restaurants may record higher nominal revenues during the summer period, while facing increased costs related to food, labour, transport and other services. Businesses operating under fixed-price tour agreements or with limited capacity to adjust room rates during the season face greater margin pressure compared with operators using more flexible pricing models.
Euro limits monetary policy tools
As Montenegro uses the euro, the country does not have an independent monetary policy mechanism for responding to inflation pressures. Inflation management therefore depends on factors including fiscal discipline, market competition, import logistics and the ability of domestic supply chains to meet increased summer demand without significant price increases.
