Page 66 - bne IntelliNews Southeastern Europe Outlook 2025

4.7 Inflation & Monetary Policy – Montenegro
The World Bank expects that Montenegro’s inflation will fall to 3.7% in 2025 from an estimated 4.2% in 2024. In 2026, inflation is seen declining further, to 2.7%.
The government in Podgorica has a significantly more optimistic forecast that inflation will average 2.9% in 2025-2027, with growth driven by household consumption, wage and pension increases, tourism expansion and EU-funded infrastructure projects, including highway construction and railway upgrades.
The latest available statistics office data showed that Montenegro's consumer prices index (CPI) accelerated to 1.7% in November 2024 from 1.2% in the previous month. On an annual basis, the highest price increases were observed in the communication sector (7.4%), hotels and restaurants (6.2%), housing, water, electricity and gas (5.2%) and furnishing (3.8%). Conversely, transport costs decreased by 2.7% y/y, while the clothing prices saw a decrease of 0.1% y/y.
Over the first eleven months of 2024, consumer prices rose by 3.4% y/y.
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