Montenegro’s annual inflation rate slowed to 2.9% in January 2026 from 4% in December, reaching its lowest level since March 2025. The deceleration was driven by more moderate price increases for food and non-alcoholic beverages (2.9% vs 4.2% in December), housing and utilities (4.9% vs 7.4%), furnishings, household equipment and routine household maintenance (2.9% vs 3.2%), health (12.6% vs 13.6%), and recreation, sports and culture (2.4% vs 5%).
Transport costs declined (-1.1% vs a 1.5% increase previously), while prices rose at a faster pace for alcoholic beverages and tobacco (5.7% vs 5.2%) and for restaurants and accommodation services (5.5% vs 5.4%). Price dynamics for clothing and footwear (-2.2%) and education (0%) were unchanged.
On a monthly basis, consumer prices increased by 0.1%, rebounding from a 0.3% decline in December. Meanwhile, the annual harmonized inflation rate eased to 2.6% from 3.7%.
