Food prices in Montenegro for the past two years, from September 2021 to the same month of this year, according to the official data of the Monstat Directorate for Statistics, have increased by 36 percent, while for the same period the total inflation was 25 percent.
This shows that food prices in this period grew at significantly higher rates than other products and services.
Also, according to Monstat data, in the minimum consumer basket for an average family of four, food accounts for 47 percent of monthly expenses. The lower the family's income, the greater the share of food in total consumption.
This means that the increase in food prices with such high rates affects the poorest the most.
An overview of prices for some food and personal hygiene products from a market in Podgorica are given in the table. What is noticeable is that prices differ not only by market, but also within a chain, depending on whether its market is in a richer or poorer neighborhood.
The minimum consumer basket in Montenegro in September amounted to 847 euros, of which 397 euros were needed for food alone for a four-member family, and 450 euros were needed for everything else. This means that for a family of four, with two adults and two children, 13,23 euros or 4,41 euros for one of the three meals a day is enough for food. That is, 3,31 euros per person for all three meals a day is "enough".
Given that the smallest sandwiches with a modest content in Podgorica fast food restaurants and bakeries cost two to two and a half euros, as well as the smallest bottle of yogurt from 60 to 80 cents, this would mean that for three small sedwiches and glasses of yogurt, you need from eight to 11 euros.
Montenegro is the only country in Europe where the official state statistics office calculates the consumer basket. In most other countries, this is done by trade unions, independent scientific institutes... The Montenegrin consumer food basket, according to the methodology itself, includes the minimum intake of calories sufficient to sustain life.
That is why every publication of the consumer basket is greeted with very negative comments by the public. During the past years, trade unions and political parties proposed that Monstat change its methodology and calculate the consumer basket according to the actual needs of the family, or that it stop doing so.
In the annual plan, Monstat no longer has a consumer basket for the next year, that is, it will stop calculating it.
The Union of Free Trade Unions formed its Center for Education, Information and Trade Union Research (CEISI), which will publish its calculation of the consumer basket for a family of four on December 1.
They preliminarily announced that their basket will certainly be twice as big as Monstat's and that it could go up to 2.000 euros.
"The methodology itself for creating the trade union consumer basket is based on the comparative experiences and analyzes of trade unions from around the world. Care will be taken to meet international standards, and as a source of information we will only use relevant international websites that deal with statistics and research," said Marko Subotić, advisor for economic policy at USS.
In Montenegro, there was no official research into the cause of inflation and to what extent, whether the increase was due to an increase in import prices from abroad or whether the margins of importers and traders led to it as a dominant influence.
The Montenegrin Minister of Finance, Aleksandar Damjanović, recently accused traders and their margins of inflation, which he said are the largest in Europe, while the Minister of Economy, whose portfolio includes trade, Goran Đurović, said that the margins in Montenegro are at the regional level. and Europe.
At the end of September, the campaign "Stop Inflation" began in Montenegro, which includes over 100 items in all large supermarkets, whose prices have been reduced from 11 to 48 percent.
Đurović then said that this discount was made possible because the importers and traders gave up the largest part of their margins and that now they kept the margins only in the amounts of up to five percent each.
Mathematics says that the price has been reduced by around 48 percent, and importers and traders still have margins of five percent each, that the previous margins on that product were worth almost 60 percent.
Serbia: Trade margins supported prices
The prices of basic foodstuffs in Serbia have increased significantly compared to the previous year, and despite the "Better price" campaign, primarily due to the increase in energy prices, the professional public is not optimistic that stabilization will occur in the near future.
Agricultural producers, as well as representatives of the bakery industry, previously explained to "Danas" that production costs are constantly increasing, and that this affects the price of primary products.
However, in addition to the consequences caused by fuel, gas and electricity price increases, economists also point to the high margins of retailers, which make products in supermarkets significantly more expensive than necessary. This is confirmed for "Danas" by the professor of the Faculty of Economics in Kragujevac, Veroljub Dugalić, who suggests that even foreign companies, which in the world have margins of around five percent, keep a double-digit number for them in Serbia, because, according to him, there is no control.
"Trade margins here are a matter of monopolies, which are held by large trade chains in Serbia. Margins in this amount of 30, 40 or 50 percent do not exist anywhere in the world, and there are no interest rates in that amount. We have come to a situation where the producer is paid cheaply for what he produces, and the same thing is very expensive for the customer. This difference is the trade margin," says Dugalić, warning that agricultural producers, on the other hand, are paid so little that it is no longer worthwhile for them to engage in this business.
In this regard, he adds that "a serious country deals with production, while Serbia deals with consumption and populism."
What is the difference between purchase prices and prices of products on the shelves, can be seen from the fact that producers sell milk for about 40 dinars per liter (34 cents), while in stores the price ranges from 130 to 175 dinars (1,1 to 1,48. 2,8 euros). Long-lasting milk "Moja kravica" of one liter and with 130 percent milk fat costs between 135 and 153 dinars on sale in Dis, Idea and Roda, and its regular price is up to 1,30 dinars (150 euros). Speaking of dairy products, a liter of Imlek yogurt in a tetrapack is more expensive than milk, and its promotional price is 1,27 dinars (175 euros), and the regular price is up to 1,48 dinars (150 euros). Similar prices also apply when it comes to "Moja kravica" liter chocolate milk, which is discounted in most markets. It can be purchased at a price of 190 to 1,27 dinars (1,61 to XNUMX euros).
The data of the Republic Institute of Statistics for the first week of October show the same, according to which the most common price of sterilized milk in Belgrade was 155 dinars (1,31 euros), while the most affordable was in Pančevo, costing 125 dinars (1,06 euros).
On the other hand, when it comes to hygiene products, ten rolls of three-layer toilet paper "Perfex" hold the highest price in Maksi, where they cost 430 dinars (3,64 euros), but on sale in Univereksport and Dis they can be bought for 200 (1,69 .620 euros). For Persil sensitive powder, in most large retail chains such as Idea, Maksi, Dis and Roda, the discount price varies between 680 and 5,25 dinars (5,76 to 1,8 euros) for 996 kilograms. However, at the regular price in supermarkets, the price goes up to 8,44 dinars (100 euros). In addition, most hand soaps cost 85 dinars (120 cents) and more, and Davov with the scent of shea butter is on sale in most chains and costs 1,01 dinars (XNUMX euros).
Also, when looking at the prices of food products, among the most sensitive categories for citizens' pockets is meat, the rise in prices of which, apart from production costs and margins, is also influenced by the constant decline in livestock.
Petar Bogosavljević from the Movement for Consumer Protection of Serbia agrees with this, noting that the main problem lies in insufficient production, which results in insufficient supply and high prices.
"When we compare the price of pork and beef with chicken, and the average income in Serbia, it is clear why chicken is consumed the most. A large number of consumers are unable to pay for beef and pork. However, the problem is much more complex, and has multiple causes. The first is that we have a very small, or insufficient supply, and we do not stimulate the increase in production. In animal husbandry, this problem has been going on for decades, and it does not only apply to pork. In addition to all that, Serbia does not follow the free market, which opens up free imports. "Excessive protection, in the eyes of impoverished producers, gives them room to make extra profits," Bogosavljević points out.
Considering that agro-analysts pointed to the increased consumption of chicken meat, which they assessed as a characteristic of poor countries, Bogosavljević notes that we do not consume chicken to the extent that it is the case in countries with normal consumption.
"In terms of meat consumption, we belong to the group of countries with low consumption, even of chicken, not to mention fish. All this is a consequence of prices, which have reduced the real purchasing power of consumers, Bogosavljević said.
In support of this claim is the fact that the most common price of fresh fish in the first week of October in Belgrade was 750 dinars (6,35 euros), while in other cities it ranged between 660 in Niš (5,59 euros) and 850 in Smederevo ( 7,20 euros).
People struggle with high prices by suffering, and provide themselves in accordance with the amount of income they have, says Petar Bogosavljević from the Movement for Consumer Protection of Serbia
On the other hand, the most common price of beef in stores in the city was 1.100 dinars (9,32 euros) in Belgrade, but the lowest was recorded in Smederevo, and was 800 dinars (6,78 euros). The promotional price of a kilogram of beef in larger markets such as Roda and Idea is 1.149 dinars (9,75 euros), while it is cheaper by 50 to 150 dinars (0,40 to 1,20 euros) in Univerexport and Lidl.
Pork meat was cheaper in all cities, except in Kraljevo. According to RZS data for the first week of October, in this city the most common price of pork neck or sternum in stores was 840 dinars (7,12 euros), while in Belgrade it cost 720 (6,10 euros), and the lowest in Novi Pazar - 650 dinars (5,50 euros).
Veal ribs, neck and chops were the most expensive in stores in Novi Sad, where the most frequently recorded price was 1.746 dinars (14,85 euros). The cheapest were in Vranje and Zrenjanin, 980 dinars (8,30 euros). However, the most common price of veal in Belgrade stores was 1.300 dinars (11,02 euros).
When it comes to meat, a whole fresh chicken is the most affordable, and a kilogram in the Belgrade markets was 319 dinars (2,71 euros). In stores in this city, the most common price was 330 dinars (2,80 euros), while in stores in Zajecar, a whole chicken cost 260 dinars (2,20 euros). Chicken wings are the most affordable in supermarkets, and a kilogram costs from 320 to 430 dinars (2,72 to 3,64). Similar prices are for drumstick and carabatak, and the most expensive is chicken fillet, which can be found for 620 dinars (5,25 euros) at the promotional price, but in most large retail chains, a kilogram of this meat is more than 670 dinars (5,68 euros ).
Ćevapi, burgers and sausages have a similar price, and it generally ranges from 600 (mostly on sale) to 700 dinars (5,93 euros).
In addition to the aforementioned foodstuffs and chemical products, and despite limiting the price of "Sava" flour and bread to 54 dinars (48 cents), the increase in the price of bread is felt through the prices of other producers. Thus, sliced bread can hardly be found in supermarkets for less than 85 (72 cents), and the most common price is 120 dinars (1,02 euros).
In this regard, if we take into account that the minimum consumer basket for July 2023 was 52.062 dinars (441 euros), and the minimum wage was 39 dinars less, the question arises as to how citizens manage to cope with the mentioned prices.
"People in Serbia struggle with high prices by suffering, and they provide themselves in accordance with the amount of income they have. It is known that the category with low incomes is the most orderly in paying off their obligations, because, knowing that they don't have any, and that they would get into a more difficult situation if they don't pay their obligations on time, they give up shopping in order to settle the bill. After that, they buy cheaper things and adjust the trade to their purchasing power, concludes Bogosavljević.
BiH: Sarma is eaten on average
Some eat meat, some eat cabbage, and on average we all eat sarma. This sentence perhaps best explains the current situation in which the citizens of Bosnia and Herzegovina find themselves, which relates to inflation, price growth, average wages and ultimately the consumer basket, which is getting more and more expensive every month.
The Federation of Independent Trade Unions of Bosnia and Herzegovina calculated that the trade union consumer basket for the month of September 2023 is 2.993,50 KM (1.540 euros). The average salary paid in the Federation of BiH is 1.257 KM (644 euros), while the average salary in the Republic of Srpska is 1.277 KM (654 euros).
So, if you have two average salaries in the household, you still lack a few hundred KM to fill the average union consumer basket.
Of that 2.993,50 KM, according to the calculation of the Federation of Trade Unions, 41,3 percent is spent on food, which comes to slightly more than 1.200 KM (615 euros). We walked through a supermarket in the capital of Bosnia and Herzegovina. We noticed that the least crowded is the meat and meat products department, but also that many products are marked with a discount sign.
You can see the prices of certain products in the table, this is only one market, in other markets or shopping centers it may be a little cheaper or a little more expensive, in the end all the products are there, plus or minus half a mark. And we are talking only about food, and where are the other items related to the consumer basket.
Inflation, according to Murisa Marić, president of the Association for Consumer Protection Don from Prijedor, turned us towards only looking at food.
"For us, life was reduced only to whether we would have enough money for food, as if everything else that makes a quality life was irrelevant. Unfortunately, the vast majority of BiH citizens have so little money that everyone is occupied only with the question of whether they will have enough money to feed their families. It is also a fact that a lot of money, about 400-500 KM (205-230 euros), is allocated per month for public utility companies, and the remaining money is mostly reduced to food items. Inflation also takes its toll on all other categories that make up the quality of life, such as vacations, trips, going to concerts, to the cinema, engaging in some kind of recreation... all of that has become unattainable for many, said Marić.
Our fellow citizens with whom we spoke also told us that they spend most of their money on utilities, followed by food. As one fellow citizen says, price increases are almost daily and citizens generally follow promotions and buy at discounts. The measures adopted by the entity governments, as our fellow citizens told us, are not very good. And, while the authorities in Bosnia and Herzegovina make decisions that are obviously not against anyone, prices are still freely formed, and every week citizens are faced with the question of whether they will have one or more meals with meat that week. Will they buy a kilogram of veal or beef (boneless), which is among the most expensive, or will they wait for a sale and buy something with bones. It's cheaper though.
Bonus video:
