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

Montenegro to speed up re-nationalisation of power firm EPCG

Montenegro’s government has decided to speed up the acquisition of Italian A2A's stake in the power firm EPCG, paying €68.9mn for a ... more

EU slams Montenegro’s lack of progress in fight against corruption

The European Commission slammed Montenegro for its lack of progress in fight against organised crime in its progress report released on April 17, and said that the country ... more

Bulgaria’s Borissov appeals to Western Balkan leaders to preserve peace

Boyko Borissov, prime minister of the current EU Council chair Bulgaria, called on April 10 on the leaders of the Western Balkan countries to preserve peace and ... more

Dismiss