The results of the government’s “Limited Prices” initiative, launched a month and a half ago, will be known only in February next year, as the program lasts until January 31. It is expected that this action will help improve the standard of living for citizens, particularly with the recent salary increases under the “Europe Now 2” program, according to the Ministry of Economic Development (MER), led by Minister Nik Đeljošaj.
The government aims to stabilize and potentially reduce prices of 71 types of products, covering over 1,000 items, with an anticipated average decrease of 20%. The MER highlighted that inflation reached its lowest level in several years in September, following a peak of 17.2% in 2022, with food prices rising by 28.9%. In contrast, inflation was recorded at 4.3% in 2023, with food and non-alcoholic beverages showing a rise of only 1.7%. By September 2024, the annual inflation rate was just 1%.
The MER stated that the “Limited Prices” initiative, which applies to wholesale and retail sectors in over 80% of retail outlets in Montenegro, has positively impacted the stabilization of essential food prices without compromising supply continuity. The Union of Free Trade Unions of Montenegro (USSCG) also expressed support for the initiative, noting that it could significantly reduce costs in their presented consumer basket, which averaged €2,000 in the third quarter, with the highest expenses related to food products.
On the enforcement side, the MER reported that compliance with the government’s price cap is high, with market inspections revealing 13 violations and imposing fines totaling €60,500. They emphasized the need for ongoing inspections, suggesting that penalties should be increased for retailers who might intentionally violate price limits for higher profits.
While there are no indications of price increases for non-covered products, the USSCG noted significant price disparities across different retailers. They advocate for improved market monitoring by consumers to maximize savings and suggested that competitive measures and the potential re-establishment of commodity reserves for essential goods could further mitigate high food prices in Montenegro.
