A larger agricultural budget and investments in agricultural production, as well as more significant allocations to improve the competitiveness of the domestic economy, are some of the long-term solutions that could help curb inflation in Montenegro, announced the Minister of Economic Development, Nik Đeljošaj.
"In addition, we must work on improving infrastructure, through the construction of a highway, modernization of the railway and the arrival of low-cost companies. All of this will affect the economic growth of the country and the standard of living of citizens, and compensate for the administrative increase in wages," Đeljošaj said in parliament, answering parliamentary questions.
When asked by Democratic Party of Socialists (DPS) MP Andrija Nikolić whether the Government had a strategy to protect citizens from uncontrolled price increases, he replied that there was no "magic wand".
"There is no magic wand to solve this. We need a strategic plan," said Đeljošaj.
He said that this year, Montenegro recorded slightly higher inflation than in EU countries, while in the previous 15 years it was at a similar level. According to him, inflation in the surrounding region is identical to that in Montenegro.
"The biggest impact on inflation this year was the increase in value added tax (VAT) on tourism services, from 7 to 15 percent, the increase in beach prices, and the growth in wages, which caused higher spending," explained Đeljošaj.
He added that in the past two years, stability has been recorded when it comes to prices in the food industry, meaning that no excessive growth has been recorded.
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