President of the Montenegrin Employers’ Association, Vasilije Kostić, said in an interview with Antena M that citizens, especially those with average or lower incomes, feel the impact of price increases most directly and can best assess whether inflation exists. His comments came in response to Deputy Prime Minister and Minister of Economic Development Nik Đeljošaj, who recently claimed that there has been no significant rise in food prices over the past two years.
Kostić stated that price growth is evident and has seriously affected living standards. He argued that citizens are dissatisfied with the government’s pricing policy, adding that political interests often overshadow economic realities.
He criticized what he described as the government’s lack of direction in economic management, noting that price controls have proven counterproductive both in theory and practice. “Price caps are primarily driven by political, not economic motives. They create shortages and trigger increases in the prices of other goods,” Kostić said, emphasizing that low-income households—who spend over 70% of their income on food—are the most affected by inflationary pressures.
According to Kostić, the government could mitigate the problem by introducing subsidies or social stores, which would also support the economy. Otherwise, he warned, price restrictions harm both consumers and businesses.
“Market principles are unforgiving,” he said. “No business will continue to operate at a loss indefinitely. While companies can occasionally participate in solidarity measures, such practices cannot be sustainable.”
Kostić concluded that the government’s policy of price control has failed to deliver results and questioned why it continues to pursue it.
