The Limited Prices campaign is not a good model for controlling inflation, and considering the previous similar campaigns, food price caps always backfire – the economic observer, Mirza Muleskovic, has assessed for Gradska TV.
Mr Muleskovic warns that the mentioned campaign will provide short-term benefits, while it’s expected that prices will rise along with the announced increase in salaries.
Apart from the Limited Prices campaign, the ratio between the salary and prices is still unacceptable, as citizens say.
Although the intention of the government to somehow help citizens is always justifiable, the question is what the consequences of the current campaign would be, Mr Muleskovic notes.
“Based on the previous campaigns, food price caps always backfire, while during the campaigns, prices of other items, where a cap on the price was not put. rise in order to generate profit margins,” he explains.
