Over the past four years, the cost of living in Bosnia and Herzegovina (BiH) has increased significantly, with the value of the consumer basket rising by an amount equivalent to an average monthly salary. A typical family now spends 1,123 Bosnian marks (€574) more compared to 2020, when the total cost was 1,840 marks (€941). The difference in food expenses alone from June 2020 to now is 475 marks (€243).

Reports suggest that a family in BiH now needs around 3,700 marks (€1,894) per month, excluding rent or mortgage payments. With housing costs included, monthly expenses exceed 4,000 marks (€2,046), significantly higher than the officially calculated minimum costs.

Basic food prices have surged, particularly since the Russian-Ukrainian conflict in 2022, which impacted global markets. Flour prices have increased by 48%, bread by 63%, beef by 61%, and pork by 50%. Eggs are now 64% more expensive, milk has gone up by 65%, and potatoes by 47%.

Despite some wage increases, the rise in essential goods has significantly reduced purchasing power. For example, in 2021, 100 marks (€51) could cover a variety of staples, including meat, dairy, and produce, but those same items now cost around 150 marks (€77). The price of chicken fillets, cheese, and butter has notably increased, with butter alone now 11 marks (€6) more expensive than three years ago.

Data shows that the prices of goods in BiH have reached 85% of the EU average, while wages remain much lower, putting further pressure on households. Consumer groups have highlighted that since the COVID-19 pandemic, the prices of essential goods have steadily increased, leaving many wondering how people are managing to cope.

Even with rising salaries and pensions, the pace of inflation, particularly in food prices, has left many families struggling to maintain their standard of living, and financial challenges are expected to continue, Buka portal wrote.