Montenegro’s annual consumer price inflation decreased to approximately 2.9 percent in January 2026, down from around 4 percent in December 2025. This marks the lowest inflation rate since early 2025, reflecting a general moderation in price growth across several key sectors. Despite the overall decline, certain categories, including tobacco, housing, and specific food items, continue to exert upward pressure on prices.
National statistical data indicates that while many consumer goods and services experienced modest year-on-year price increases in January, the rate of these increases has slowed compared to the latter part of 2025. Prices for food and non-alcoholic beverages continued to rise, although at a reduced pace relative to late 2025. Similarly, costs associated with housing, water, electricity, gas, and other utilities also saw a deceleration in their growth. Conversely, transport costs recorded a slight annual decline.
Even with the overall reduction in inflation rates, the prices of alcohol and tobacco products displayed a more pronounced upward trend, influenced by recent changes in excise duties and market dynamics affecting cigarettes and related products. Increased rents for housing and certain food items further contributed to persistent inflationary pressures, counteracting some of the disinflation observed in other areas of the consumer price index. These mixed trends indicate that while headline inflation has lessened, cost-of-living challenges remain significant for households in Montenegro.
From a monthly perspective, the consumer price index showed a slight increase following a period of negative month-over-month price changes during the last quarter of 2025. This easing of inflation corresponds with broader monetary and economic indicators suggesting stabilizing price dynamics at the start of 2026. However, ongoing global and regional economic factors continue to impact import prices and domestic cost structures.
