Inflation and rising prices will continue for at least another six months, economists estimate. For most citizens, this trend has already become unbearable, and economic growth is insufficient to significantly affect living standards. Everything could have long-term and unforeseeable consequences for the population if the measures announced by the entity governments do not suppress further price increases.
Namely, the Central Bank of Bosnia and Herzegovina (BiH) projected inflation in the first quarter of this year at four percent. It is a continuation of the trend from the end of last year when it reached almost five percent. This is clear from the continuous growth of prices of a large number of products and services.
“The big issue is the cost of energy that really threatens and that citizens feel through oil, gas, other energy and I think that there should be no spiral effect, so it would be good if you pay attention to the cost of energy so as not to cause that spiral of increase in other costs, ” pointed out the Governor of the Central Bank of BiH, Senad Softic.
Gradually, but steadily, the prices of other products are rising. This is disastrous for the majority of the population of BiH, whose income cannot cover even half of the monthly needs of the average family.
“They will definitely continue their growth, and which must definitely be done is that the competent authorities at all levels adopt some measures to protect citizens, especially at the cost of private individuals or large retail chains having less profit,” said Leja Causevic Suceska from the Alliance of Independent Trade Unions of BiH.
”The rise in food prices is the most painful, ” told an economist Svetlana Cenic. She is not convinced that limiting trade margins could lead to price stabilization.
“The fact that the margin in the Federation will be limited to 6-8% does not mean anything, he will charge 6-8% on the entry price, which is higher for you if it is more expensive, and also, there will be less food for those with the lowest earnings and where is limited, ” said Cenic.
It is important to mention that the instrument of the Central Bank is to maintain the stability of the currency. The executive plan is for everyone to act in their own way.
“We will react by increasing salaries and pensions, and we will react with the purchase of certain foodstuffs for which we have reserved funds in the budget,” said the Minister of Finance of Republika Srpska (RS), Zora Vidovic.
According to the plan of intervention procurements for this year, oil and oil derivatives, food products, and hygienic means will be procured if the Government makes such a decision. Citizens are not convinced whether the authorities can influence the mitigation of the consequences of the increase.
Meanwhile, oil prices are recording a new jump in the world market. Some domestic distributors have already reacted with new price increases. In addition, the prices of transport, production, and then consumer goods could rise.