Russia’s invasion of Ukraine will greatly affect the economies of many countries, and that conflict will be felt in Bosnia and Herzegovina (BiH), which has been shaken by high inflation and almost daily waves of rising prices for several months now.
With the Russian attack on Ukraine, fear has crept in among the people of BiH that prices could continue to rise, especially when it comes to basic foodstuffs.
“Even before the war, the price of everything went up. Specifically, a bag of potatoes was 2.5 BAM, now one kg costs 3.4 BAM. It is normal that all this will lead to a price increase. It is inevitable.”
“There is panic, which is normal. The world is buying, procuring, there is a fear, but look at our politicians, no one has provided us with reserves.”
Russia and Ukraine are among the world’s largest grain exporters. Only during the first day of the war, the prices of wheat on the world stock exchanges jumped even more and reached the level of 2012. However, the prices in the food industry are increasing every day.
“I think that the current situation in Russia, ie in Ukraine, cannot produce any great consequences, however, we have an overflow of inflation from last year, ie printing huge amounts of money, and now that money has come to the market and it is evident that the entire food industry will raise prices in some amount, “said Sasa Trivic, owner of Krajina Klas.
Economic analyst Zoran Pavlovic stated: “We are practically in a situation where prices will continue to rise, depending on when the conflict will stop. The moment it stops, there will be a calming down, because there is that speculative capital, that is, the capital that is available, and all the products that are the subject of buying on the stock exchanges in moments of political tensions are practically more expensive. “
Also, the price of fuel at gas stations in BiH has already risen. Even when there were signs of tightening, oil prices on the stock exchanges jumped, and consequently in our country.
“Retail prices are going up, petroleum products are practically on the rise. At this moment, there is no direct impact if the current crisis between Russia and Ukraine is observed. This is a continuation of the energy crisis that has been going on for several months, “said Dragan Trisic, chairman of the group for trade in oil and oil derivatives.
The question also arises as to how much all this will disrupt an already fragile economy, such as ours.
“What can be said is that we are a small, open economy and that, unfortunately, we have no interest from the entity governments in making strategic reserves and producing goods and food products for our citizens. It is like having all the raw materials you need, but you will not produce anything, you are buying everything, ” added Pavlovic.
Due to possible negative consequences for the BiH economy, the Federation Government announced a thematic session tomorrow. In Republika Srpska (RS), they are not announcing themselves on this occasion yet, but they have previously announced certain measures to help the population, due to the already visible effects of inflation.
E.Dz.
Source: Federalna
