Inflation in Bosnia and Herzegovina at the end of last year officially amounted to 4.4 percent, but the real impact on household budgets was much stronger than statistical data show.
According to the data of the BiH Statistics Agency, the highest price growth was recorded in the food, housing and catering sectors, precisely those that make up the largest part of citizens’ daily expenses.
Citizens and economic experts warn that during 2025, real inflation was significantly higher, and that food prices rose almost continuously. Many testify that daily wages and salaries can no longer keep up with basic life needs, while shopping is reduced to a minimum. Citizens point out that they are buying less, by grams, and that products that used to be a common part of the consumer basket are increasingly being abandoned.
The chain of price increases was further accelerated after the increase in the price of electricity at the beginning of last year in the Republika Srpska, which led to an increase in the prices of almost all goods and services in both entities. Prices, according to consumer ratings, rose from week to week, often without clear justification and with the absence of market supervision. Because of this, there were also calls for a boycott of shopping in markets, restaurants and gas stations, but these boycotts did not bring long-term results.
Economic analyst Zoran Pavlović warns that certain products have experienced drastic price increases, citing the example of bread, the price of which, he says, has increased by as much as 117 percent. Compared to the year 2021, when the average salary could buy more than a thousand loaves of bread, today only a little more than 700 can be bought. The price increases also affected bakery products, meat and basic foodstuffs, while consumers are increasingly choosing cheaper alternatives or reducing the quantities they buy.
Pensioners, citizens on the minimum wage and oncology patients, who face skyrocketing drug prices, felt a particularly heavy blow. In pharmacies, the costs of therapy have become unsustainable for many, and some citizens testify that they are forced to finance themselves medicines that were previously covered by health insurance. In addition to medicines, the costs of utilities, firewood and electricity also increased.
In the Federation of Bosnia and Herzegovina, electricity prices for households have been increased since September, along with the introduction of new block tariffs, while in the Republic of Srpska, due to the increase in network fees, citizens will receive even higher bills from February. According to the available data, the prices of firewood increased by about 25 percent, which further burdened household budgets in the winter months.
The union consumer basket for a family of four at the end of 2025 amounted to 3,355 marks, which means that at least two average salaries are needed to cover basic monthly expenses. For citizens with minimum incomes and pensioners, last year was reduced to mere survival, and for many the only way out was a meal in public kitchens. Inflation thus, despite the official figures, left a deep mark on the daily life of the majority of the citizens of Bosnia and Herzegovina.
