FBiH Minister announces robust "Triple strike" strategy to curb food price inflation

Given that basic staples constitute the most significant portion of the Consumer Price Index (CPI), any disruption within this sector serves as a primary driver of overall inflation. In response, the Ministry has established three strategic pillars of action which are set to take effect shortly.

The first pillar serves as a wholesale filter, whereby locking margins at the distribution level will prevent wholesalers from passing inflationary pressures down to retailers, effectively halting cost increases at the source. The second pillar focuses on direct consumer protection through the implementation of fixed price ceilings or margin caps on essential food and hygiene items. Perhaps most significantly, the third pillar introduces "bread by weight" regulations. This measure mandates that bakery products be priced per kilogram, ending the prevalent practice of "shrinkflation," where manufacturers covertly raised prices by reducing the weight of loaves whilst maintaining the same shelf price.

Minister Hasicevic stated that the objective of these measures is to precisely target inflation where it most affects citizens, whilst ensuring the continued functionality of the market.

The FBiH Government further noted that existing restrictions on petroleum product margins, currently set at 0.25 Bosnian marks (approximately €0.13) per litre in retail, remain in force. Additionally, the "Locked price" initiative, covering 63 specific products, is scheduled to continue until 1 May 2026.

Retailers should expect significantly heightened activity from the FBiH Administration for Inspection Affairs in the coming weeks to prevent any abuse of the restricted margins. A formal rulebook defining these new measures is expected to be finalised by 1 of May. The initial intervention is planned for a 60-day period, with the possibility of an extension should market conditions necessitate further action. This package represents a concerted effort by the authorities to provide price predictability for essential household goods amidst the ongoing energy crisis and rising production costs.