Increase in annual inflation in Montenegro

According to the Monstat agency, annual inflation in October this year was 1,2 %. This is 0,2 percentage points higher than in September, reflecting a small but noticeable increase in the level of prices for goods and services. Compared with December last year, the average price increase was 2,1 %.

Special attention should be paid to the fact that during January-October, on average, consumer prices increased by more than 3,6 %.

Price changes by category

An analysis of consumer spending shows that various changes in prices for goods and services were recorded in October:

• clothing and footwear +3,8 %;
• furniture and household appliances +0,4 %; 
• healthcare +0,3 %;
• utilities +0,1 %. 

At the same time, categories such as restaurants and hotels noted a 3 % decrease in prices, and transportation – by 1 %. It is noteworthy that the prices of food, alcohol and tobacco remained almost at the same level (-0,1 %). 

Causes and forecasts

Analyzing the current situation, we can identify several reasons for the increase in inflation. Firstly, these are seasonal price fluctuations typical for the autumn period. The demand for certain categories of goods, such as clothing, is increasing. In addition, the increase in energy prices and instability in global markets may also have an impact on domestic prices.

Experts suggest that inflation may remain at the current level in the coming months, but a sharp jump is not expected. It is assumed that with a stable economic situation, price growth will be under control, but consumers should be attentive and ready for potential changes.

Given the projected stability relative to other European countries, Montenegro should be considered as a place for possible relocation and work. In this context, the Digital Nomad visa program, available to freelancers and remote employees, becomes an interesting option. They told us in more detail about how to get a Montenegrin digital nomad visa and are ready to help with the registration of all documents.

Comparison with the past

Historical analysis shows that similar fluctuations in inflation were observed in previous years. For example, in 2022, inflation indicators also showed dramatic changes due to the effects of the pandemic and global crises. It is important to note that previous inflation levels reached values of about 3-4%, which raises concerns about consumer ability.

Maintaining awareness of the current economic situation will help you better adapt and make informed decisions in the face of changing inflation.