The purchase of 15 products, the prices of which are monitored in the Podgorica supermarket "Vijesti", now costs about 2,4 euros less than in September last year.
EUR 2023 should have been allocated for these items in the ninth month of 50,22, and EUR 47,88 today.
It is similar in a small store in Podgorica, where this consumer basket now costs 35,1 euros, which is 3,1 cheaper than in September last year.
Both fruits and vegetables on the market are cheaper by a total of about one euro than a year ago.
Although the data show that going to the store is slightly more favorable today, it should be taken into account that the biggest part of the difference in both large and small markets is the price of chicken, which now costs about 2,3 euros less than in September 2023.
It is important to point out that the "Limited Price" state action is currently in force, which was not the case last year in September.
This was shown, among other things, by the monthly price barometer "Vijesti", which monitored the monthly price movements of 15 products in Podgorica's small and large markets and markets. The reporter went to these facilities once a month since September last year, on the 14th of the month, in order to list the prices, monitor their movements and possible price increases or decreases. We are talking about 15 different foods, of the same manufacturer, of identical type and weight, in order to give a true picture of monthly changes.
According to the data of the Monstat Administration for Statistics, consumer prices in July were 0,4 percent higher than in June. Prices in July this year also had a growth of 3,5 percent, compared to July last year. The biggest impact on monthly inflation was the increase in prices for accommodation, fuel, restaurants, cafes, meat, coffee, fruit, oils, air transport...
Cucumbers in the market are almost a euro more expensive
The biggest difference compared to September last year was recorded in the price of chicken, which today is almost 2,3 euros cheaper than then. A kilogram now costs 8,5 euros, while in the ninth month of 2023 the same product cost 10,8 euros. Compared to September last year, veal also costs about half a euro less, for which 14,5 euros should be allocated, and the price of milk is also slightly lower. Fish sticks and toilet paper cost about 40 cents less, while the price of dishwashing detergent and toilet paper is 20 and 30 cents respectively.
On the other hand, kalodont, chocolate and pressed ham are ten cents more expensive. About 20 cents more should be allocated for a kilogram of apples and tomatoes, while the biggest price difference is in the case of cucumbers, which today are 80 cents more expensive in supermarkets than on the same day last year...
For the purchase of all 15 products from the list in a large market, in September 2023, 50,22 euros had to be allocated.
By comparing the current prices with the prices from November last year, when the 43rd Government's action "Stop Inflation" was in effect, it can be seen that the same basket of 15 items in a large store cost 47,15 euros. This means that these products had to be paid 70 cents less than today, when this basket costs 47,88 euros. The biggest difference in price then was in the case of fish sticks, which cost a euro less than today - 1,8 euros, while fruits and vegetables were 10 to 90 cents cheaper than now.
Also, the products that were then covered by the state action "Stop Inflation" are slightly cheaper than those that are subject to the current "Limited Prices". Compared to November, the ninth month of this year is still more favorable in the case of chicken and veal, by one or half a euro.
A big drop in the price of chicken was also recorded in a small market in Podgorica, which now costs 2023 euros less than in September 2,5 - 10 instead of 12,5 euros. About 20 cents less should be allocated for bananas, cucumbers and eggs, while apples are now ten cents cheaper. Calodont also became significantly cheaper by 30 cents, so it costs 1,2 euros.
In a small shop compared to a year ago, milk is now more expensive, so a liter costs 1,5 euros, while chocolate is 20 cents more expensive and costs 1,19 euros. Other prices did not change significantly.
For the total basket of items in a small market, consumers had to shell out 38,26 euros in September of last year. The same products two months later, in November 2023, although the small shop was not subject to the state measures to fight inflation, had to pay 35,9 euros, which is 2,4 euros cheaper. The same purchase today costs 35,1 euros.
At the market stalls that "Vijesti" visits, only the price of bananas has not changed since last year, a kilo of which today, as then, costs a euro. In the meantime, tomatoes have become cheaper by half a euro, so they cost one euro, while cucumbers and apples are cheaper by 20 cents each.
On the counters, these fruits and vegetables cost 5,1 euros in September last year, and then in November 2023, the price dropped slightly to five euros. Today, you have to pay 4,2 euros for the same groceries in the same place.
Will there be deflation?
The state action, i.e. the limitation of trading margins through the "Limited Price" measure, officially began on September 6. With the new government decision, margins for 66 food and hygiene products are limited in wholesale and retail stores, and compared to the earlier action of the same name, the list of products includes fruits, vegetables, a few more types of meat and food for personal hygiene. This action will last until January 31 next year.
The government expects that through this measure the prices of more than 1.000 items will be reduced, and margins in the food sector in wholesale and retail stores are limited to 10 percent. They are also for hygiene products limited to a maximum of 10 percent in wholesale and 15 percent in retail.
The margin represents the difference between the purchase and sale price of the goods.
An earlier measure limiting the margins for five basic foodstuffs to five percent each in wholesale and retail trade is currently in force. That list includes wheat flour (type 400 and 500), granulated sugar, edible sunflower oil and table salt per kilogram regardless of weight.
The action "Stop Inflation" originally started in March 2023 and lasted until July. Its sequel "100+" officially started on October 2nd, and with it, prices were reduced for more than 100 items, among which, in addition to food and consumer goods, there were also medicines and white goods. The goal of this campaign by the then Government, retail chains and importers was to preserve the standards of citizens and slow down inflation.
In parallel with this action, in March, October, November and December 2023, monthly deflation, i.e. a drop in prices, was recorded.
Margins limited no questions asked
The government did not consult the Chamber of Commerce, part of the retail chains and two employers' associations about the launch of the new campaign "Limited prices", and they previously said that the measure lacks economic analysis, social dialogue, that it will damage the business and competitive environment, create negative consequences for companies , to have elements of populism...
Traders announced that they will respect the measures as well as all Government decisions, but also that they are not responsible for the general increase in prices.
"Our position is that this will not affect the reduction of inflation, because margins are not the reason for price increases. Margins are not, nor will they be, the reason for inflation. The company 'Voli' in its market chain applies the lowest possible margins to ensure stable and uninterrupted operations. Margin restrictions and salary increases do not go hand in hand," told "Vijesta" from the "Voli" shopping chain.
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