According to Eurostat data, the price level of consumer goods and services in Montenegro last year was 63 percent of the average in the European Union (EU).

Monstat reported that there were significant variations in price levels for consumer goods and services among EU member states last year.

Denmark had the highest price level at 143 percent of the EU average, followed by Ireland at 138 percent, Luxembourg at 133 percent, Finland at 124 percent, and Belgium at 117 percent. In contrast, the lowest price levels were found in Hungary at 74 percent, Poland at 72 percent, Romania at 64 percent, and Bulgaria at 60 percent of the EU average.

“In the region, Croatia has the highest price level of consumer goods and services at 76 percent of the EU average, while Albania and Serbia report levels of 70 percent and 67 percent, respectively. The price level for consumer goods and services in Bosnia and Herzegovina stands at 63 percent of the European average, and North Macedonia records 55 percent,” the statement indicated.

Purchasing power parities essentially represent price relationships that exhibit the ratio of prices, expressed in national currencies, for the same goods and services across different countries.

Purchasing power parity serves as a tool for converting national currencies into a common currency, which equalizes the purchasing power of these currencies.

Price level indices allow for a comparison of price levels between countries in relation to the EU average.

If the price level index exceeds 100, the country is deemed relatively more expensive compared to the EU average; conversely, if the index is below 100, the country is considered relatively cheaper than the EU average.

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