The rise in prices in Bosnia and Herzegovina continues to burden household budgets, and according to the latest estimates of the Central Bank of Bosnia and Herzegovina, inflation will not significantly slow down in 2026. Although sudden jumps are not expected, the constant rise in the cost of living, especially when it comes to food, energy and utilities, is increasingly affecting the standard of citizens.
Denis Berberović, associate professor of the Faculty of Economics in Sarajevo, points out that the projected inflation of 3.4 percent is higher than what the domestic economy was used to before, but that we cannot yet speak of an alarming situation. He reminds that before the pandemic, inflation was mostly around one percent for years.
According to him, citizens feel the consequences of rising prices every day because for the same amount of money today they can buy less than before. According to him, this shows how inflation gradually reduces purchasing power and affects living standards.
Berberović believes that the main reasons for inflationary pressures in Bosnia and Herzegovina are mostly external, that is, it is about imported inflation. He adds that political instability and war events in the Middle East additionally affect economic trends and prices in the country.
Data from the Agency for Statistics of Bosnia and Herzegovina show that prices in February 2026 increased by an average of 0.5 percent compared to January. The highest growth was recorded in food and non-alcoholic beverages, housing and overhead costs, and alcohol and tobacco, while the decline in prices was recorded in the clothing and footwear category. Compared to February last year, prices are higher by 3.3 percent.
Speaking about how to mitigate the consequences of inflation, Berberović states that citizens can adjust consumption and choose cheaper products from the categories they normally buy, but warns that such measures have a limited scope and cannot fully protect the household budget.
For the year 2027, milder price growth, i.e. inflation of around 2.7 percent, is forecast, which could mean a gradual stabilization. Nevertheless, Berberović warns that such estimates should be viewed with caution, because global and political circumstances can still significantly affect the further movement of prices, he writes RTV Slon.
