Food prices in Montenegro since July 2019, according to Monstat data, have increased by 44 percent and continue to rise, and merchants blame importers and rising costs for this, although according to tax returns, their income and profit are also growing significantly.
In March of this year, the government, in cooperation with retail chains, launched the “Stop Inflation” campaign, during which the prices of some brands were reduced, but it was short-lived and prices continued to rise already in April.
The Ministry of Economic Development and Tourism, which includes the sub-department of trade, did not respond to question whether they monitor price growth in retail stores, whether they are concerned about the continuation of inflation, and whether they plan to continue the action “stop inflation” or bring some other measures to stop or limit price growth.
They state that the Ministry did not even answer the question of whether the rise in prices is due to the so-called “import inflation” or the high margins of importers, wholesalers and retailers.
In Montenegro, they say, no one has seriously investigated the causes of inflation, unlike in Croatia, whose National Bank has determined in a scientific study that the main reason for inflation is the increase in the margins of importers and traders in the desire to increase profits. The Central Bank of Montenegro made a “Diagnostic analysis of inflation”, in which they stated that inflation in Montenegro is under the dominant influence of global factors, primarily the rise in food and oil prices on the international market, but without clear mathematical proof of such a claim.
That this assertion of the CBCG is not correct is also shown by the data of Monstat, that in every month there was an increase in monthly inflation, except for a short time in March, even though during the past two years fuel prices, as well as stock market prices of cereals, oilseeds and other commodities, have fallen significantly, without affecting the prices in Montenegrin markets.
Monstat’s consumer basket increased from 646 to 818 euros from July 2019 to June of this year, i.e. a family of four needs 170 euros more than three years ago to survive.
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