Over the past six years, citizens of Bosnia and Herzegovina have been facing a steady rise in prices, accompanied by increasing inequality. While food accounted for 37 percent of household expenses in January 2020, that share has climbed to 45.8 percent five years later, placing additional pressure on already strained budgets.
Although recent days have brought a slight drop in prices of fruit and vegetables at local markets, these products remain out of reach for many citizens. Vendors say the prices are still high compared to purchasing power.
“A cucumber is 7 KM, peppers were 10, now they are 7 to 8 depending on the type, tomatoes are still 8 KM. Strawberries are 12, 14 or 15 KM depending on size and quality,” said market vendor Olenija Trifković.
Statistics illustrate the widening gap between income and expenses. Over five years, average wages have increased by 670 KM, while the value of the consumer basket has risen by 919 KM. In everyday life, this often means citizens are forced to buy in bulk when possible or give up certain products altogether.
“People living in our country are champions of survival with low incomes. We have reached a situation where some foods that were once normal have now become a rarity. Meat used to be bought by the kilogram, and now by the gram, which speaks volumes about the situation we are in,” said Dragan Jošić from the Consumer Protection Association “Reakcija” in Banja Luka.
Experts warn that official figures do not fully reflect the real cost of living, which continues to outpace income growth. As a result, many citizens are forced to find alternative ways to cope.
“We depend only on our ability to survive in this environment. The only way out for our citizens is to find a way to produce something or to find another job,” said economist Zoran Pavlović.
Another indicator of declining living standards is inflation. According to available calculations, 100 euros from 2020 today has the purchasing power of approximately 125 euros, highlighting the significant erosion of value over time.
