The expected inflation rate in Bosnia and Herzegovina for 2026 is projected at 3.20 percent, with stabilization expected in 2027. This estimate was issued by the Central Bank of Bosnia and Herzegovina. However, forecasts by economic analysts are far more pessimistic, predicting inflation of up to ten percent. At the same time, citizens are witnessing rising prices of basic food items, energy sources, medicines, electricity, water and heating. What does 2026 have in store?
Basic necessities. High prices. Daily surprises on store shelves. Constant price increases. This is how citizens describe their grocery shopping experience. Everything is expensive, they say.
The Government of Republika Srpska has received a request to urgently analyze and adjust the prices of basic products and services. Trade unions and consumer protection associations warn that the living standard of citizens is directly at risk.
“We can no longer calculate all these figures, given the constant announcements of price increases. Even the announced inflation represents an additional blow to the already strained household budgets of consumers. This raises a major question of how long, and to what extent, consumers will be able to carry the burden of these price increases,” Murisa Marić from the consumer association “Don” said.
“We expect the Government of Republika Srpska to offer concrete and effective solutions within the shortest possible timeframe, along with clear measures and precise deadlines, in order to protect the living standards of workers and all citizens of Republika Srpska. If a timely and effective response is absent, the Confederation of Trade Unions of Republika Srpska will, in line with its role and responsibility, take further steps to protect the rights and interests of workers,” representatives of the Confederation of Trade Unions of Republika Srpska said.
As concrete reactions from authorities in Bosnia and Herzegovina remain absent, rising prices are often justified by “market freedom”, while new price hikes continue to be introduced. Meanwhile, the Central Bank of Bosnia and Herzegovina has released its inflation forecast.
“For 2026, inflation is expected to reach 3.20 percent, representing an increase of 0.10 percentage points. At the same time, a gradual stabilization of inflationary trends is expected in 2027, with projected inflation of 2.80 percent,” the Central Bank of Bosnia and Herzegovina said.
This forecast is optimistic, according to our interviewee. Inflation in 2026 could still reach as much as ten percent, he warns, while economic growth is expected to stagnate.
“If we were to manage to remain at around four to five percent, from the perspective of inflation, that is, the reduction in the value of money and the depreciation of key economic factors, that would be acceptable. In our case, however, the situation is somewhat different, even though it is not a natural development. I believe it would be satisfactory if we manage to stay within the range of four to five percent,” Aleksandar Ljuboja, an economic analyst, said.
According to macroeconomic projections, price stabilization and modest economic growth are expected in the Eurozone. Total inflation for 2026 is estimated at 1.9 percent.
