Montenegro has reported a decrease in its annual consumer price inflation rate, which fell to 2.9 percent in January 2026, down from approximately 4 percent in December 2025. This marks the lowest inflation rate since early 2025, reflecting a broader trend of moderated price growth across several key categories. Despite the overall decline, certain sectors continue to exert upward pressure on prices, particularly tobacco products, housing costs, and select food items.
Recent national statistical data indicates that while prices for various consumer goods and services increased year-on-year in January, the rate of these increases has slowed compared to late 2025. Notably, food and non-alcoholic beverage prices continued to rise, although at a reduced pace compared to the last months of the previous year. Additionally, costs associated with housing, water, electricity, gas, and other utilities showed a deceleration in their growth rates. Conversely, transport costs experienced a slight annual decline.
Despite the overall easing of inflation, the prices of alcohol and tobacco products have demonstrated a stronger upward trend. This trend can be attributed to recent adjustments in excise duties as well as market dynamics affecting cigarette pricing. Furthermore, rising rents for housing and certain food categories have contributed to persistent inflationary pressures in these areas, counterbalancing some of the disinflation observed in other segments of the consumer price index. These mixed signals suggest that while headline inflation has decreased, Montenegrin households still face significant cost-of-living challenges in essential expenditure categories.
On a month-to-month basis, the consumer price index recorded a modest increase after experiencing negative price movements during the final quarter of 2025. This slowdown in inflation aligns with broader economic indicators that point towards stabilizing price dynamics at the beginning of 2026. However, ongoing global and regional economic conditions continue to influence both import prices and domestic cost structures.
