Inflation, wage growth and other macro and microeconomic influences have made Montenegro the most expensive destination for living in the region, if we exclude Croatia and Slovenia, which are members of the European Union.
According to these data, the consumer price index of our country is 42.4, which is the highest calculated index for the Balkan Peninsula. The index includes the costs of housing, clothing, food, transportation, internet, communal services, groceries, as well as numerous other parameters. The cost of living in New York and the price ratio of the same products and services were taken as a parameter.
The cost of living index is a theoretical price index that measures the relative cost of living across time or regions. It is an index that measures differences in the prices of goods and services and allows for substitution with other items as prices vary.
Thus, for example, Montenegro has an index of 15.7 when it comes to apartment rental prices, while the rent index combined with other living costs is 29.7, which ranks it among the more expensive destinations in the Southern European region. This means that apartment rental prices in Montenegro are 70% lower than in New York, but according to the rent index, we are even ahead of Croatia and Greece. However, the average monthly salary in New York is around 4,500 euros, while in Montenegro it is around 800 euros.
The most expensive place to live is Switzerland, where the cost of living is 17 percent higher than in New York. However, apart from our regional neighbors, two EU members, namely Romania and Bulgaria, are behind us in the cost of living index. The cost of living measured by this index is lower even in Russia and Ukraine, although Ukraine should be taken with a grain of salt considering the state of war.
The minimum basket increased by 200 EUR in three years
The minimum consumer basket for a family of four in September of this year amounted to just over 847 euros, Monstat data show, which represents an increase of even 201 euros compared to the same period in 2020.
When the minimum wage was 250 euros, the minimum basket was 646 euros, while after the increase of the minimum wage to 450 euros, the minimum basket also increased by 200 euros, more precisely by 201, to 847 euros.
According to the latest data, expenditures for food and non-alcoholic beverages amounted to 397.5 euros, and for non-food products and services 449.9 euros. The consumer basket increased by 23 euros only since July, when it amounted to 824 euros.
