The Government's new decision on limiting margins in wholesale and retail stores has not yet entered into force because it was not published in the Official Gazette, but "Vijesti" reporters visited the largest markets in Podgorica in order to list the value of some items and continuously monitor them.
On August 28, the government adopted a decision according to which it will limit the margins for 66 food and hygiene products in wholesale and retail stores, and compared to the earlier action "Limited prices", the list of products includes fruits, vegetables, a few more types of meat and groceries for personal hygiene. The new state action will begin eight days after its publication in the Official Gazette, and will last until January 31 of the following year.
The prices are listed in "Our discount store" of the company "Voli" in Zabjelo, the supermarket of the company "Hard Discount Laković" in the same neighborhood, as well as in the hypermarket "Idea super" in the shopping center "Mall of Montenegro". Reporters recorded 66 prices in each of these three stores, but the list was not fully complied with because some products were not available, they were not available in the grams to which the Government's measures will apply, while the listing was partly hindered by the internal procedures of the traders.
During the research, items from various manufacturers were recorded, in order to give a true picture of the price range of some products.
Margins for the food sector in wholesale and retail stores are limited to 10 percent, while for hygiene products they are limited to a maximum of 10 percent in wholesale and 15 percent in retail.
Margin is the difference between the purchase and sale price of goods.
The Government also pointed out that there will be more than 1.000 items on sale, given that products of a certain weight will be cheaper, regardless of the manufacturer.
The government did not consult the Chamber of Commerce, part of the trade chains and two employers' associations about the new action to limit margins, and the day before yesterday they pointed out that the measure lacks economic analysis, social dialogue, that it will damage the business and competitive environment, create negative consequences for companies, that the measures have elements of populism...
Part of the traders told "Vijesta" that they will comply with the new state action, but that they believe that their margins are not the main reason for high prices in Montenegro.
"Our position is that this will not affect the reduction of inflation, because margins are not the reason for rising prices. Margins are not, nor will they be, the reason for inflation. The company 'Voli' in its market chain applies the lowest margins that can ensure stable and uninterrupted operations. Margin restrictions and salary increases do not go hand in hand," they pointed out from the "Voli" trade chain.
10 percent will be the maximum margin for the food sector in wholesale and retail stores, while for hygiene products they are limited to a maximum of 10 percent in wholesale and 15 percent in retail.
Deputy Prime Minister and Minister of Economic Development Nick Djelosaj at a press conference at the end of August, said that after this action comes into effect, they expect a reduction in prices, because, as he claims, according to the findings of the market inspection, trade margins are much higher than those to which they will be limited.
Consumer prices in July were 0,4 percent higher than in June, according to data from the Monstat Statistics Authority. Compared to July last year, prices in the seventh month of this year were higher by 3,5 percent.
Monstat cites price increases in the restaurant and hotel sector, transportation, furniture, household equipment, food and soft drinks, housing, water, electricity, gas... as the main reasons for the increase in monthly inflation.
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