The price level of consumer goods and services in Montenegro last year was 63 percent of the European Union (EU) average, according to Eurostat data.
Monstat reported that price levels for consumer goods and services varied significantly among EU member states last year.
Denmark recorded the highest price level at 143 percent of the EU average, followed by Ireland at 138 percent, Luxembourg at 133 percent, Finland at 124 percent, and Belgium at 117 percent. The lowest price levels were observed in Hungary (74 percent), Poland (72 percent), Romania (64 percent), and Bulgaria (60 percent) of the EU average.
Among countries in the region, Croatia recorded the highest price level for consumer goods and services at 76 percent of the EU average, while Albania and Serbia had price levels of 70 percent and 67 percent respectively. Bosnia and Herzegovina’s price level stood at 63 percent of the European average, and North Macedonia at 55 percent, the statement said.
Purchasing power parities (PPPs) represent price relationships in their simplest form, showing the ratio of prices expressed in national currencies for the same goods and services across different countries.
PPPs are a tool for converting national currencies into a common currency that equalizes the purchasing power of different national currencies.
Price level indices allow for the comparison of price levels between countries relative to the EU average. If a price level index is above 100, the country is considered relatively more expensive compared to the EU average, while a price level index below 100 indicates the country is relatively cheaper compared to the EU average.
