Higher transport expenses were the main contributor to Montenegro’s accelerating consumer inflation in August, as fuel and lubricant prices for motor vehicles increased by more than 10% in a single month. Consumer prices rose 1.2% month on month, taking annual inflation to 4.5%, up 0.7 percentage points from July.
Transport prices recorded a 5.4% monthly increase, making the category the strongest contributor to the latest rise in consumer costs. Inflationary pressures were also recorded in information and communication, where prices increased by 4.4%, followed by restaurants and accommodation at 3.1% and recreation, sport and culture at 2.4%.
The increase in consumer prices contrasted with the movement in industrial producer prices, which declined by 0.4% year on year. Within the producer-price index, mining and quarrying prices fell by 5.3%, while manufacturing prices increased by 1.1%. Producer prices for electricity, gas and steam remained unchanged. The figures indicate that August’s consumer inflation was concentrated in transport and several service categories rather than reflecting a broad increase in domestic industrial producer costs.
For households, the rise in living expenses coincided with a decline in purchasing power. Real net wages fell by 0.9% in August, meaning that higher mobility costs added to pressure on household budgets despite the subdued annual movement in industrial producer prices.
