Montenegro’s annual consumer price inflation slowed to about 2.9 percent in January 2026, down from roughly 4 percent in December 2025, marking the lowest reading since early 2025 amid a broader moderation in price growth across several major categories. The latest data show that while overall inflation has eased, upward pressures remain in specific areas such as tobacco products, housing costs and selected food items.
According to national statistical reporting, prices for many consumer goods and services rose modestly year-on-year in January, but the pace of increase slowed compared with late 2025. Food and non-alcoholic beverage prices continued to climb, albeit at a slower rate than in the final months of the previous year, while housing, water, electricity, gas and other utilities also posted a decelerated increase. At the same time, costs for transport experienced a slight decline on an annual basis.
Despite the overall easing of inflation, the cost of alcohol and tobacco products showed a firmer upward trend, partly reflecting recent adjustments to excise duties and market price dynamics for cigarettes and related goods. Higher housing rents and selected food categories also contributed to sustained upward price pressures, offsetting some of the disinflation seen in other segments of the consumer price index. These mixed trends suggest that while headline inflation has moderated, cost of living pressures in key expenditure categories persist for Montenegrin households.
On a monthly basis, the consumer price index recorded a modest increase, showing a slight rise following a period of negative month-over-month price movement in the final quarter of 2025. The slowdown in inflation aligns with broader monetary and economic indicators pointing to stabilising price dynamics early in 2026, even as ongoing global and regional economic conditions continue to influence import prices and domestic cost structures.
