Economic analyst Mirza Mulešković explained on TV E’s morning program Budilnik that price increases in Montenegro, including essential goods like bread, were expected following fiscal reforms introduced after 2024.
He highlighted that Montenegro currently manages public finances through a consumption-driven model, relying heavily on indirect taxes. This creates pressure on consumption, which in turn leads to rising prices.
Mulešković noted that from April 2025, the price of a half-kilogram loaf of bread will increase from 80 to 85 cents. He emphasized that the inflation rate in April 2025 reached 3.4%, a significant figure compared to previous years, reflecting a cumulative price increase.
He linked this inflation to administrative wage increases and fiscal policies, including two tax reforms and minimum wage hikes since 2022. According to him, these factors have driven up costs for businesses, which inevitably pass on price increases to consumers.
Mulešković also pointed out that Montenegro produces very little domestically and is heavily influenced by inflation in the region and the European Union. Additional costs such as transportation further amplify price rises locally.
He warned that ongoing increases in taxes, excises, and other levies contribute to inflation, as businesses and society eventually cannot absorb these costs without passing them on to consumers.
In conclusion, Mulešković stressed the need to balance wage growth with cautious fiscal policies to avoid continuous price hikes that burden the economy and citizens.
