Eurostat‘s latest data reveals that in the past year, prices of food and non-alcoholic beverages in Montenegro reached 87% of the average across the 27 EU member states, marking a significant upward trend. Economist Mirza Mulešković, analyzing Eurostat’s findings, pointed out that Montenegro is approaching the European average in terms of these prices.
Comparing to 2019 data, Mulešković notes that Montenegro previously stood at 57% of the EU price average for goods and services, whereas it has now risen to 64%.
Mulešković expresses concern over the nearly equalization of food and beverage prices with the EU average, especially considering earlier research showing them at 74%. He underscores that Montenegro’s GDP per capita, at 52% of the EU average, suggests no improvement in living standards; rather, the opposite.
Discussing claims that Montenegro leads the region in GDP growth, Mulešković acknowledges this trend over the past 15 years but highlights recent indicators showing other regional countries catching up over the last four years.
“All these data clearly indicate that the sharp rise in prices has undermined living standards. There has been no real increase, as any artificial wage hikes have been offset by inflation resulting from current policies and spending practices in public finance management,” emphasizes Mulešković.
“This situation has led to a scenario where, despite lower incomes, more groceries could be purchased previously. It was predictable due to economic management that increased consumption, influencing price hikes, without creating new economic values conducive to sustainable economic growth,” concludes Mulešković.
Eurostat data also reveals significant price level variations for consumer goods and services among EU member states, with Denmark recording the highest at 143% of the average, followed by Ireland (142%), Luxembourg (135%), Finland (125%), and the Netherlands (118%). Conversely, the lowest price levels were noted in Hungary (76%), Poland (66%), Romania, and Bulgaria (60%).
Among regional peers, Croatia boasts the highest consumer goods and services price levels at 76% of the EU average, followed by Serbia (68%), Albania (66%), Bosnia and Herzegovina (58%), and North Macedonia (52%). In the category of “food and non-alcoholic beverages,” Montenegro’s prices at 87% of the EU average are higher compared to Bosnia and Herzegovina (85%) and North Macedonia (68%), but lower than Croatia (102%), Serbia (96%), and Albania (91%).
In specific product groups, Montenegro’s price index for “audio-visual equipment and data processing equipment” surpasses the EU-27 average at 106, while for “motor vehicles,” it stands at 92. The lowest price levels in the region for “restaurants and hotels” are found in North Macedonia and Albania (47% and 49% of the EU average, respectively), compared to Montenegro’s 63%.
For “clothing,” Montenegro’s price index of 99 approaches the EU average closely, whereas Serbia’s index is higher (102), and significantly lower in North Macedonia (78), Turkey (30), as well as in specific EU countries like Hungary (88), Bulgaria (82), and Spain (81).
These findings, compiled by Eurostat and the OECD through the “Purchasing Power Parity” (PPP) project in collaboration with national statistical institutions, involve six surveys focusing on various product and service groups. This ongoing project, conducted biannually, provides a comprehensive analysis based on average annual prices collected for approximately 2,000 comparable products and services.
