Montenegro's harmonised inflation eases to 1.5% y/y in June 2013

By bne IntelliNews July 19, 2013

Montenegro's inflation, measured by the EU harmonised inflation index (HICP), cooled to 1.5% y/y in June from 2.1% a month earlier, due to slower price growth of food, alcoholic beverages and clothing, the statistics office said. Falling transport, household equipment and restaurants and hotels prices also helped curb price growth in June. In monthly terms, inflation edged down 0.1% in June after increasing 0.5% m/m the month before.

Food prices (33.1% of the basket) shrank 1.0% m/m, cutting the annual growth to 3.7% y/y from 5.9% the month before. Alcoholic beverages and tobacco costs edged down 0.2% m/m in June, helping trim the annual increase to 3.0% y/y from 3.2% in May.

June’s furniture and household equipment prices dropped 0.5% m/m. The annual deflation thus deepened to 1.3% y/y from 1.1% in May. Transport prices, which account for nearly 12% of the consumer basket, shrank 1.1% y/y in June narrowing from a 4.3% y/y drop the month before.

Restaurants and hotels prices also fell 2.1% y/y in June for a second straight month, reflecting falling accommodation services costs. Clothing and footwear prices growth braked to 0.5% y/y in June from 3.8% in May, also helping curb the overall index.

The 2012 average HICP inflation rose to 4% in 2012 from 3% a year earlier, mainly due to higher housing, water, electricity and other fuels prices.

Related Articles

Planned coal-fired plants in Balkans fail to meet new EU pollution standards, CEE Bankwatch warns

A new analysis by environmental group CEE Bankwatch Network has concluded that the planned coal-fired power plants in the Western Balkans do not meet ... more

Montenegro’s high court confirms indictment of those alleged to be behind plot to assassinate PM

The high court in Podgorica confirmed on June 8 the indictments of two opposition leaders and several others suspected of plotting a coup aimed at seizing power after the October 2016 general ... more

IMF says Montenegro should reduce spending on public wages and pensions to reduce debt

The International Monetary Fund advised Montenegro to reduce its spending on public wages and pensions as a next ... more

Dismiss