Living costs rise across Bosnia and Herzegovina and Montenegro

Rising living costs and inflation are placing significant pressure on households in Bosnia and Herzegovina and Montenegro. In Montenegro, the union consumer basket for a family of four reached 2,110 euros in the second quarter of 2026, while the average net salary is approximately 850 euros. This means basic needs require more than two average monthly incomes, with food alone costing around 670 euros.

In Bosnia and Herzegovina, inflation has fluctuated between 3.6% and 6.8%, with sharp increases in transport, fuel, housing, and utilities. As winter approaches, heating costs are a major concern. Pellet prices range from 550 to 800 KM, while firewood pallets cost between 150 and 350 KM. Additionally, the government of the Federation of Bosnia and Herzegovina approved a 14.42% increase in natural gas prices due to rising procurement costs from Gazprom Export.

Economic data suggests that wage growth is not keeping pace with the rising costs of essential goods and services. In Bosnia and Herzegovina, a monthly salary of 2,000 KM is increasingly viewed as insufficient for a stable life, particularly for those facing high rent or credit payments in major cities.