Prices jump at the speed of light! Such growth has not been recorded at the global level for decades. If we focus on our premises, it becomes clear that inflation is galloping and will not become single digits anytime soon. A spike in the inflation rate, accompanied by feared potential inventory shortages, is raising concerns among producers and consumers. The reasons for the spike in inflation are well known around the world. Freshly printed currency has increased the demand, which insufficient supply cannot match.
Inflation in Montenegro is breaking new records. According to MONSTAT's calculations, prices have increased by 16% on an annual basis, although most citizens will agree that the price increases are significantly higher, especially for basic foodstuffs.
Bread and cereals rose in price by 34.2%, milk, cheese and eggs by 36.8%, oil by 31.9%, vegetables by 31.6% and fruit by 22.5% within one year.
What measures is Montenegro taking to control rising inflation?
The Ministry of Economic Development and Tourism stated that the government's decision from June, on temporarily limiting the margin in wholesale shops to 5% and in retail shops to 7%, for flour, sugar, oil and salt, gave positive results. Comparative data from June and September give indications of a downward trend. The price of flour, compared to the previous period, decreased by an average of 7.3%, while the price of oil and salt experienced a decrease of 8.4% and 18%.
However, when asked why, like some countries in the region, we did not limit the prices of basic products, the ministry clearly answered that it would have the opposite effect. Limiting the prices of basic foodstuffs brings great and numerous risks and can lead to shortages.
What mechanism can you use to fight the current inflation?
Here we will show you how you have been able to profit from the movements of various currency pairs since the beginning of this year, with a focus on EUR/USD.
For more than a year now, the US dollar has been gradually strengthening against other global currencies, such as the euro, yen, British pound, yuan and Canadian dollar. The most important force driving the dollar against other major currencies is US monetary policy. The dollar is performing strongly due to stronger growth in US interest rates, which means investors can get higher returns by putting their money into US assets. This pushed the dollar to its 20-year high and is now stronger than the euro. And now investors see it as a safer option or 'haven'.
By simply converting your earnings every month from Euros to Dollars, you could have saved at least 10% of the value in the previous period.
In this example, you can see that if you converted €1.000 into US dollars every month from the beginning of 2022, now instead of €10.000 you would have €11.017, i.e. €1.017 more.
When we divide the final sum of $10.687 by the current € exchange rate of 0.97, we get €11.017, which means that the yield increases by 10%. Your investment will be 10% higher than 10 months ago.
By opening a trading account with the Limit Prime company, you can convert your money into various world currencies with just a few clicks and without commission from your home. In addition, you can also invest it in various products that tend to grow in times of inflation, such as gold, oil, shares of large companies.
Up to trading in three simple steps:
Step 1: Register
Step 2: Make a deposit
Step 3: Start trading
If you want to know more about ways to increase the value of your money, we will be happy to help you and answer all your questions. Contact us HERE!
