FX.co ★ Montenegro Inflation Rate Hits 7-Month Low

In December 2025, Montenegro's annual inflation rate eased to 4%, down from 4.2% in November, reaching its lowest level since May. This decline was largely driven by a moderation in prices for transportation, which recorded a growth of 1.5% compared to 3.3% in November, and alcoholic beverages and tobacco, which rose by 5.2% compared to the previous 6%. Additionally, there were slight decreases in the rate of price increases for furnishings, household equipment, and routine household maintenance, registering 3.2% against 3.3%. Similarly, recreation and culture experienced a slowdown, with rates moving to 5% from 7.6%, and the hospitality sector, comprising restaurants and hotels, noted a moderate increase of 5.4% down from the prior 5.8%. Furthermore, deflation in the communication sector marginally intensified, shifting from -0.7% to -0.8%. Conversely, the prices for food and non-alcoholic beverages accelerated, growing by 4.2% compared to 3.9%, as did the health sector, which saw costs rise by 13.6% from 13.1%. Meanwhile, costs associated with housing and utilities remained stable at 7.4%, and there was no change in education at 0%. Moreover, deflation in clothing and footwear softened somewhat, registering at -2.2% after -2.7%. On a month-to-month basis, consumer prices dipped by 0.3% in December, following a 0.4% reduction in the previous month. The annual harmonized inflation rate also showed a slight decline, moving to 3.7% from November's 3.9%.