Although all countries in the region are equally exposed to inflationary shocks caused by disruptions in the global market, the war in Ukraine and sanctions against Russia, the annual inflation rate in Bosnia and Herzegovina is officially the highest in the region.
No reservations
With the recently published data from Eurostat that, right after Albania, we are the second poorest country in Europe, the picture of the state in which citizens have been led by ignorance, carelessness, indecision and the government’s slowness to alleviate the consequences of the biggest crisis since the war becomes clearer.
According to the latest data from the BiH Statistics Agency, the annual inflation rate in May was 14.4 percent. In the same month last year, annual inflation was 3.6 percent. Apart from transportation (30.3 percent), food (22.7 percent) and housing and utility costs (11.3 percent) rose the most for the year.
At the same time, the annual inflation rate in Croatia was 10.8 percent, and in Montenegro 11.7 percent, while Serbia published data for June according to which inflation, compared to the same month in 2021, increased by 11.9 percent.
“Where are the commodity reserves? They serve to stabilize prices. They are purchased when the prices are more favorable, they are kept in reserve, and then they are used. Where is any measure, apart from these 100 marks, what will pay off? And those 100 marks are no longer 100 marks, they are now worth much less because inflation has “eaten” a lot,” says Doctor of Economic Sciences Svetlana Cenic.
Bosnia and Herzegovina is in the worst position because we are divided, because everyone is pulling for their own side, but also because the country is ruled by ignorant people, Cenic points out.
Some use crowding to make more profits, and margin control measures do not work because violators pay fines. The fact that the government is deaf and blind to the problems of citizens and the economy of Bosnia and Herzegovina is evident in every crisis, from floods and pandemics to today.
In addition to all the causes of a very difficult autumn, Cenic adds corruption and the fact that the authorities often experiment with solutions.
“The government does absolutely nothing! And when he says he works, it’s 100 marks for a vote in the elections, and he doesn’t solve any problem. Everything they do is freaky, uncoordinated, experimental, and there are no experiments with economics. In the economy, if you didn’t make a good assessment, and you’re a classic ignoramus who doesn’t know how to balance between fiscal and economic policy, then the citizens suffer,” says Cenic.
Cenic reminds that we had similar conversations during the coronavirus pandemic, when it became completely clear how important it is to at least have our own food.
She says that Serbia survived under sanctions only thanks to the village.
