In July 2026, Montenegro experienced an inflation rate of 3.8%, marking a significant increase as consumer prices rose by 0.8% compared to June, according to the Statistical Office, Monstat. This monthly rise is notably higher than the 0.4% recorded in May and surpasses the annual inflation rate of 3.6% reported in June. Over the first seven months of 2026, average consumer prices have risen by 3.4% compared to the same period in 2025.
While these figures are considerably lower than the double-digit inflation seen following the European energy crisis, the specifics of July’s inflation are critical for commercial stakeholders. The price increases are primarily driven by sectors such as tourism services, food, tobacco, and transport, which are particularly sensitive to seasonal demand and external cost pressures due to Montenegro’s limited domestic supply capabilities.
The most pronounced monthly increase was observed in alcoholic beverages and tobacco, where prices surged by 4.6%. Additionally, costs in restaurants and accommodation rose by 4.4%, reflecting heightened demand during the peak tourist season, allowing businesses to adjust pricing for rooms, meals, and related services.
Other categories also saw price hikes; personal care and social protection services increased by 1.3%, healthcare costs went up by 0.9%, and recreation, sport, and culture services rose by 0.8%. Food and non-alcoholic beverages experienced a 0.7% rise in prices, while transportation costs increased by 0.6%.
Further increases were noted in household equipment and routine home maintenance at 0.5%, information and communications at 0.3%, and housing-related costs (including water, electricity, gas) at a modest 0.2%. In contrast, clothing and footwear prices decreased significantly by 2.4%, likely due to seasonal discounts.
Monstat highlighted key contributors to July’s monthly inflation, including accommodation services, tobacco products, cereals and cereal products, restaurants and cafés, dairy products, eggs, passenger air transport, meat products, and personal-care services.
