Monstat's recent report says Montenegro saw price drops for the third month in a row in December. This marks the first time since 2020 that such a trend has lasted for months. Back then, a five-month drop was due to the pandemic and a global fall in oil prices.
The last three months' price drops were due to lower fuel costs, some foods, and stay services.
In October, price falls were sharp. On average, six percent for items like veggies, stays, fruit, milk, cheese, and eggs. In November, fuel costs fell, along with cheaper stay services and fruit.
December saw a continued fall in fuel costs, and prices for fruits, veggies, and meat also went down.
This trend in the last quarter of the year will likely mean smaller or no changes in January pensions. Monstat figures out inflation by using the price change rates of product groups, weighed by their use in the average shopping basket.
It's clear that lower oil prices globally played a big part in this deflation. On top of this, some food items also got cheaper. The "stop inflation" initiative imposed by government might have helped too. Initiative saw shops working with the government to cut prices hundred on items.
December's yearly inflation rate was 4.3 percent. This is a general price increase from December 2022 and the lowest yearly rate in two years. This points to a big slowdown in yearly inflation. But, monthly deflation needs to last longer and be bigger for prices to go back to levels seen two years ago.
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