Pricelist are growing unstoppably, citizens complain. Hence the boycott retail chains throughout the region. For example, class L eggs, 10 pieces, at the special price in DIS markets you will pay 149,99 dinars, in Matijević's (at the regular price) 189 dinars, and the champions of the price of this food are RODA and IDEA markets with 239,99 dinars. Therefore, the prices of food, and even basic foodstuffs, differ drastically from market to market.
The consumer association Ektefila, which called for a boycott of the market in Serbia, also draws attention to certain promotional prices on its Instagram account. For example, in IDEA markets, the promotional price of 75 grams of pistachios is 299,99 dinars, while the regular price is 150 dinars for twice the quantity, i.e. 300 grams. It is not clear how. Or, for example, sardines in oil in IDEA markets costs 289,99, and the same sardines in small shops costs 99,99 dinars. There are plenty of examples. This week, the Association called for a boycott of the Lidl market (from March 10 to March 16) with the message: "The fight for lower prices is underway."
However, how effective is this kind of fight?
Economist Dragovan Milićević says for "Vreme" that such actions have more of a psychological than a real economic effect because they last for one day or a week, which on an annual level will not significantly affect consumption because it is, after all, "an endogenous category and is satisfied in different places, i.e. sources of supply". He adds that sales prices do not only depend on large chains, but also on suppliers and distributors.
NOTHING IS BLACK BEAUTIFUL
Economist Vladimir Vučković reminds "Vreme" that prices are formed in the entire chain, not only in stores. That is why there is room for re-examination in the entire chain - what the manufacturers do, what the importers do, what the wholesalers do, and then finally the retailer. "The story is not black and white, it is not only about 'evil traders', but in Serbia we have a serious structural problem. In the economy, we often point the finger at one culprit, but in fact the problem is more complex", explains Vučković. "The state cannot and should not influence prices directly. We have had populist measures in the past few years, when one group of products was chosen and their price growth was limited. After that, there were no visible effects that would show that something was achieved. So, we want to be a market economy, and the state is there to create indirect foundations and frameworks, and as a result we have normal price dynamics."
the data were taken from the official websites of the statistical offices of Serbia, Croatia, Montenegro and Bosnia and Herzegovina...
PRICE RISE
According to the data of the Republic Institute of Statistics (RZS), inflation in January 2025, compared to the same month last year, amounted to 4,6 percent. Individually, food and non-alcoholic beverages rose in price by 4,1 percent. Bread and cereals are more expensive by 3,8 percent, oils and fats by 11,2 percent, fruit by 12,5 percent, vegetables by 5,3 percent, and so on. The average net salary in December was 108312 dinars, and the median net salary was 79624 dinars.
When we compare inflation and earnings, Vučković says that the citizens of Serbia can predominantly or even exclusively buy things in stores, that is, markets, with a large part of their income, and they do not think about buying a car, traveling several times a year or more luxurious consumption. "If that's the case, practically the entire chain of producers and traders doesn't feel that they have competition. So, people have to buy basic things in markets, no matter what the price is. And if we had more competition from trade chains, if we had a developed economy and better incomes of citizens, their income could be diverted to something else," the interviewee of "Vremena" points out.
CROATIA BOYCOTT EPIDEMIC
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The first among the boycotters of trade chains were the citizens of Croatia. The organizers of the boycott, the "Hello, Inspector" consumer platform, claim that the first store boycott in Croatia was successful and that two goals were achieved: uniting and raising consumer awareness, as well as reducing overall consumption. Out of the 19 observed days, a drop in consumption was recorded on 16 days. The biggest absolute drop in the value of accounts was in Zagreb, but also in Split, Osijek, Rijeka, Zadar, Varaždin, Pula, Karlovac, Slavonski Brod, RTS reported. However, was this effective? Damir Novotny, professor of economics at Algebra Bernays University in Zagreb, tells "Vreme" that the boycott was initially successful because it mobilized consumers, but that it had more of a political than an economic effect. "If we look at what the goals of the boycott were and whether it affected inflation, it has not been achieved. Consumption is still very strong in Croatia and has been growing month by month as a result of rising wages," Novotny points out. He goes on to explain that in Croatia last year there was a sharp increase in wages, especially in the public sector. "Let's say the average salary in the state sector is 2500 euros. Not to mention that the salaries of the ministers are 5000 euros. The productivity of the public sector is very low, and they know very well that they have not earned it."
CROATIA DOMINATION OF THE GREY ECONOMY
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According to the data of the Croatian State Statistics Office (DZS), total inflation in February 2025, compared to February 2024, is 3,6 percent, and the prices of food and non-alcoholic beverages are 4,9 percent higher. In January 2025, compared to January 2024, total inflation is 4,0 percent, and the prices of food and non-alcoholic beverages are 5,1 percent higher. The average net salary in Croatia in December was 1361 euros, and the median net salary was 1156 euros, according to data from the DZS.
Novotny points out that Croatia has an additional problem with statistics, and with regard to earnings, because the shadow economy prevails: "In a study commissioned by the European Parliament and prepared by the University of Linz, it is shown that in our country the shadow economy is extremely high. According to this estimate, around 30 percent of GDP is generated in such a way, without being included in the statistics." He adds that there is also a part of society that does not have the "privilege" of participating in the gray economy. "For about 3,5 million inhabitants, we have about eight billion in retail sales. In Slovenia, that figure is about two billion. So, Croatia has three times more consumption in retail than Slovenia," Novotny emphasizes. In other words, says our interlocutor, if all consumers in Croatia do not buy anything for six months, which of course is not possible, inflation would not be stopped because everyone is waiting for those tourists who are ready to pay more.
CROATIA COPYING A REGION
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In Croatia, too, the government tried to limit the prices of certain products, as a measure in the fight against inflation. Novotny says it was unsuccessful. "They limited the prices of some products, which, to be honest, was a political measure, as if they were doing something against inflation. However, on the other hand, they added fuel to the fire of inflation by raising wages in the public sector." Novotny concludes that from the beginning the boycott could not have had an impact on inflation. "It could be some kind of social rebellion, like we always see and like it was. But prices are not formed according to feelings and emotions, but according to supply and demand."
BiH SAME ATTEMPTS, SAME RESULTS
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According to the data of the BiH Statistics Agency, inflation in January 2025 was 3,3 percent compared to January last year, while the prices of food and non-alcoholic beverages increased by 6,3 percent. The average net salary in December 2024 was around 730 euros.
The epidemic of boycotts has also spread to Bosnia and Herzegovina. On the other hand, the Draft Law on Price Control was adopted in the Federation of Bosnia and Herzegovina, and an agreement was announced with traders and trade unions on reducing and freezing the prices of some items. In the Republika Srpska, rigorous controls on trade margins have been initiated. Economist Svetlana Cenić told "Vreme" that price locking in the Federation followed a price increase. The list includes, in addition to some food items, garbage bags, dish wires and the like, and that's not enough to make a living. On the other hand, she states, in the Republika Srpska, they tried to limit the margin, and in the end it turned into nothing. "All in all, they didn't do anything. In short, the boycott suited them, and in the Federation in particular, it was absolutely nothing. The idea of support was to divert attention from all those things that the Government did not do," emphasized the "Vremena" interviewee. When asked what the Government has done, they have not done anything: "If you ask how many people are in absolute poverty, they have no idea what the price structure is for? They even increased the price of electricity, all in all, zero." Cenić adds that the prices in the Republic of Srpska are somewhat lower. "As it is now a non-working week in the Federation, people who are in the neighborhood of the municipalities of Republika Srpska go there on Sundays and buy because they realized that the prices are lower", our interlocutor points out and concludes that price locking is just experimentation and a political measure that will not bring anything.
MONTENEGRO MISREPRESENTATION, THE CONSEQUENCES ARE CLEAR
"There is no dilemma between citizens/small entrepreneurs on the one hand, and large supermarket chains on the other. Today, we are already seeing the first signs that the messages we sent together have been heard loud and clear! The government will continue to encourage competition in order to reduce prices while increasing earnings," said Prime Minister Milojko Spajić at the end of January, when the retail chain boycott was organized. According to the data of the MONSTAT Directorate of Statistics, the total inflation in January 2025 compared to the same month last year was 2,8 percent, and the prices of food and non-alcoholic beverages were 0,9 percent higher.
Goran Kapor, an economic journalist, states for "Vreme" that Eurostat data for the past three years show that prices in Montenegro grew at significantly higher rates than in most EU members and countries in the region. "The cumulative rate of inflation for food for this period is 41 percent, so it significantly reduced the purchasing power of citizens, especially those with lower wages and incomes." The average net salary in December, according to MONSTAT data, was 1012 euros. Kapor points out that the growth of the average salary is a misleading statistic because even 75 percent of employees still receive a salary below the average, which means that the average of 1000 euros is "really" a small number of those with high salaries. Even in Montenegro, says Kapor, the boycott of shops did not prove to be particularly effective, although there were "some minor promotional actions to lower prices".
MONTENEGRO - "THE GOVERNMENT'S GUILT"
Kapor points out that after the boycott, retail chains mostly "pretend to be dead" and do not advertise for fear of attracting the wrath of consumers. "The only exception was the owner of the 'Woli' market chain, Dragan Bokan, who, after being the first to vote for a seven-day blockade in a poll on social networks, participated in the forum of the Faculty of Economics, where he presented the data that his company has the lowest margins and pointed the blame for the rise in prices to the Government." In Montenegro, too, the Government is carrying out a price restriction action, which allegedly reduced margins. However, according to Kapor, it has no effect on a significant drop in prices. "There is no official minimum consumption basket in Montenegro. There is a consumption basket calculated by the Union of Free Trade Unions and it is now 1970 euros, that is, it is twice the average salary and four times the average pension, so for most citizens it cannot be said that there is an increase in the standard. In fact, for most citizens, these incomes are just enough to survive," concludes our interlocutor.
SERBIA COMPREHENSIVE ANALYSIS NECESSARY
Vladimir Vučković concludes that he would like, no matter how textbook it sounds, that some competent commission - our commission for the protection of competition, some interdepartmental body or group of experts - would seriously analyze this problem, after which we would get more concrete answers. "This is how we will permanently attack the traders, that they are the only ones to blame, but they are not the only ones. Without empirical results, the state could initiate such research."
