Although the Deputy Prime Minister for Economic Policy and Minister of Economic Development, Nik Gjeljoshaj, announced that new measures would be introduced by mid-May following the end of the government’s food price control campaign ‘Limited Prices’, nearly two months have passed without any action, Pobjeda daily writes.
The Ministry of Economic Development on several occasions indicated that the mentioned measures had significantly contributed to a drop in inflation although no official data has been presented yet.
Meanwhile, food prices in groceries have started to grow again, while the latest data of the Statistical Office of Montenegro (MONSTAT) suggest that the annual inflation rate stands at 4.2%. “The annual inflation rate is majorly affected by the price rise of the following categories: meat (4.5%), hospitality services (11.7%), actual rents (20.1%), pharmacy products (15.2%), fruit (19.2%), oils and fats (15.5%), vegetables (6.1%), water supply (24.1%), residential maintenance (15.9%), cheese, milk and eggs (1.8%), bread and cereals (2.7%), newspapers and magazines (33.9%),” MONSTAT’s figures show.
Monthly inflation in June was on average 0.4% higher compared to May, and was mostly affected by the rise in the price of fruit (8.1%), a 5.6% rise in accommodation costs, and a 12.8% jump in air transport prices.
This trend, according to economic analyst Mirza Muleskovic, was to be expected.
As he adds, over the last three years, apart from four price campaigns, we haven’t had other measures in the fight against price rises, and in recent months – not even that. He assumes the government itself faces challenges when it comes to introducing new measures, having in mind that our policies are majorly consumption-oriented.
“The real question is whether decision-makers are even genuinely interested in stabilizing prices, because that would call into question the sustainability of public finances,” Mr Muleskovic considers.
He expects that the summer tourism season will further contribute to price rises, but stresses that both the state budget and citizens’ living standard must be taken into account.
According to him, that’s the only way people will truly feel the impact of higher salaries.
The previous ‘Limited Prices’ campaign was launched on 6 September and was supposed to last until the end of January this year, but at its session held on 30 January, the Government of Montenegro decided to extend it until the end of April this year.
