The annual inflation rate in Montenegro rose to 1 percent in December 2019 from 0.5 percent in the previous month. It was the highest inflation rate in a year, as cost of transport rebounded (2.4 percent from -1.4 percent in November) and prices advanced further for food & non-alcoholic beverages (3.2 percent from 2.9 percent) and furniture & household equipment (1 percent from 0.6 percent). Also, cost of clothing & footwear dropped at a softer pace (-2.4 percent from -3.4 percent). In contrast, prices slowed for miscellaneous goods & services (1 percent from 1.1 percent); health (0.1 percent from 0.3 percent); and alcoholic beverages & tobacco (0.1 percent from 0.2 percent). Additionally, prices of housing & utilities continued to fall (-0.5 percent, the same as in November). On a monthly basis, consumer prices declined 0.1 percent, after increasing 0.1 percent in the prior month. Considering 2019 as a whole, the inflation rate was at 0.4 percent. Inflation Rate in Montenegro averaged 4.46 percent from 2001 until 2019, reaching an all time high of 26.50 percent in December of 2001 and a record low of -1.40 percent in April of 2014.
Inflation Rate in Montenegro is expected to be 1.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Montenegro to stand at 1.40 in 12 months time. In the long-term, the Montenegro Inflation Rate is projected to trend around 1.70 percent in 2020, according to our econometric models.