The union consumer basket for March 2022 amounts to 2.448.46 BAM, while the average paid salary in the Federation of Bosnia and Herzegovina (FBiH) is 1.045 BAM. 51 percent of this amount is needed for the nutrition of a family of four accounts, and the coverage of the union’s consumer basket with a salary is 42.67 percent, Avaz writes.
In the midst of mass price increases, citizens are rightly wondering how to survive, and many cannot make ends meet.
Bridging the gap
In an interview, Admir Cavalic, an economic analyst, said that citizens seek salvation in non-dedicated loans in order to meet basic living needs.
”The data show that citizens take loans from banks or microcredit organizations and in that way bridge the gap in disposable income. One of the things that are being done is non-dedicated borrowing,” stated Cavalic.
It is important to emphasize that the median salary in BiH ranges from 700 to 750 BAM.
”This means that 50 percent of workers work for a salary of up to 750 BAM, and 50 percent for a salary above 750 BAM. This data very much points to the fact that currently, it is very difficult to make ends meet in BiH,” explained Cavalic.
Further, he noted that the trade union consumer basket is not a statistical indicator published by government organizations and that it is informal as such.
”Certain criticisms refer to the fact that it is overestimated due to the fact that low-income countries do not have the same patterns of shopping behavior as the developed world countries. This means that our citizens spend more on livelihoods, food, electricity, and the like, and less on going to the theater or cinema on a weekly basis. That is taken into account by the union’s consumer basket,” mentioned Cavalic.
Enormous growth
However, he added, the consumer price index, which is a valid statistical indicator, shows a drastic rise in prices.
”Prices have been rising for the past year, especially when it comes to food products. In the disposable income of our citizens, how much they spend, the largest share refers to food and citizens have big problems, especially those with lower incomes in the context of survival,” told Cavalic.
Rational consumption
Citizens can overcome the crisis period by rationalizing consumption.
”We should try to postpone some other non-existent needs and dedicate ourselves to the rationalization of our own consumption in the hope that these inflationary effects will somehow stabilize from the middle to the end of this year,” Cavalic concluded.
E.Dz.
