Consumer prices in Montenegro fell 0.1 percent year-on-year in June 2019, after a 0.7 percent gain in May. It was the first decline in consumer prices since September 2016, as cost of transport dropped (-2.6 percent vs 0.5 percent in May) and decreased further for clothing & footwear (-7.9 percent vs -6.7 percent) and health (-0.5 percent vs -0.4 percent). In addition, prices slowed for food & alcoholic beverages (3.2 percent vs 4.1 percent) and housing & utilities (1.5 percent vs 2.8 percent). Meanwhile, cost rebounded for furniture & household equipment (0.1 percent vs -0.1 percent) and restaurants & hotels rebounded (0.2 percent vs -0.6 percent). Also, prices went down less for communication (-0.9 percent vs -1 percent) and alcoholic beverages & tobacco (-6.8 percent vs -6.9 percent) while inflation was steady for miscellaneous goods & services (1 percent, the same as in May). On a monthly basis, consumer prices decreased 0.7 percent, following a 0.2 percent gain in May. Inflation Rate in Montenegro averaged 4.56 percent from 2001 until 2019, reaching an all time high of 26.50 percent in December of 2001 and a record low of -1.40 percent in April of 2014.
Inflation Rate in Montenegro is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Montenegro to stand at 1.60 in 12 months time. In the long-term, the Montenegro Inflation Rate is projected to trend around 1.90 percent in 2020, according to our econometric models.