In our country, the trend of a slight decline in food and fuel prices continued. After several price increases, the citizens were relieved. However, experts call for caution. Although the peak of the price increase, as it is claimed, is behind us – an uncertain autumn awaits us.
The persistent increase in fuel prices for several months caused an enormous increase in the price of food. While prices were increasing almost daily, citizens’ wallets were getting thinner. The difficult and uncertain economic situation further weakened the poor standard of living. However, in recent days, we have seen a more positive trend. The drop in prices is a pleasant surprise, after record price increases. There are many reasons for falling inflation and prices. With increased oil production and a decrease in global energy consumption, one move by experts was crucial.
“One of the most effective is the rise in interest rates. We’ve tried it for the last 40 years and it usually works. Perhaps I can cautiously say that the highest price level is behind us. It is possible that the prices of energy products will rise in the coming period, as we approach winter, but globally we should have a reduction in prices”, says Adnan Muminovic, external economic adviser in the Office of the Prime Minister of FBiH.
And all global changes, even positive ones, are reflected on a small economy like ours. A liter of fuel at some gas stations costs less than 3 marks, and compared to last week, it is 10 pfennigs cheaper. New – lower prices were also recorded on store shelves. Just a few days ago, a liter of oil cost almost 6 marks, today it costs 5, and in some stores even less. This trend is also the same for the prices of flour and meat products, and chicken – which recorded the highest price increase – today costs even a few marks less. This is especially important for BiH citizens who spend most of their income on food.
While some citizens are satisfied, others are cautious. According to experts, such an attitude is justified. High prices could once again become commonplace. As we slowly head towards winter, possible negative trends are also coming our way.
“There may be new disturbances if the EU introduces new packages of sanctions against Russia and there is further pressure on the price of oil, which could lead to a new price increase and then we could return to the same negative trends. The fact that private distributors reduce prices is long overdue – I think they made a profit on the delayed price reduction and they should not be particularly praised”, says economic expert Igor Gavran.
The abolition of the excise tax is still pending. Although the House of Peoples of the state parliament supported the abolition of the fuel tax, they did not finish the job. And the question is also when – because it is the season of collective vacations. Until then, prices are dictated by stocks on the world market, and often by private distributors, Federalna writes.