Can Kosovo stop price hikes?

The Kosovo government finds itself in the face of citizens' demands to act towards rising prices of basic products.

I think that we should increase wages and match prices that have risen”, says Blerina Qerim, citizen of Pristina.

The conditions of our population are such that there is no way to afford these prices. The state must prevent the cost of flour, bread and other elementary things”, says Sali Ejupi, also from the capital.

The Kosovo Statistics Agency, released on December 7th, has indicated that consumer product prices have increased by 5.7 percent in the second quarter of 2021.

The higher growth is noted in bread, cereals, meat, milk, cheese, oil, eggs, trees, and vegetables.

The increase has also suffered the price of electricity.

The pricelike situation is in other Western Balkan countries and in Europe.

To this end it has been due to obstacles in the chain of supplies that have caused the pandemia of the Coronavirus as well as the rising gas prices.

To ease the economic base on citizens, countries like Serbia and Northern Macedonia have frozen the prices of basic products.

The Kosovo government says it is doing other actions, which, according to her, would legitimately and appropriately respond to the created situation.

“We are working on the full functioning of the Kosovo Competition Authority, through the completion of board”, says spokesperson Progress Kryeziu.

“The Ministry of Industry, Intervention and Trade has already prosecuted for approval the Law for the Protection of Competition, which envisions areas and forms of co-operation between the Ministry and the Kosovo Competition Authority for sound market competition”, he adds.

The free competition market economy is the basis of the Republic of Kosovo's economic adjustment.

A form of intervention: Raising Salaries

The chairman of the Kosovo Economic House, Berat Rukiqi, says the government's potential decision to freeze or intervene in market prices would conflict with the Kosovo Constitution.

I don't know if freezing prices is the best way. I haven't seen this practice at the European level, you should see another form, not in this form”, Rukiqi says Radio Free Europe.

As another form, he mentions rising wages.

The average gross salary in Kosovo is estimated to be around 460 euros. The average gross salary in the public sector is around 620 euros, while in the private sector around 380 euros.

Rukiqi says that there has been no higher inflation in Kosovo since 1999 than this year.

The price raising has greatly affected the welfare of citizens. The government must ease the burden of the population”, he says.

According to Pristina University Economics Professor Berim Ramosaj, the Kosovo government must start with the subsidisation of producers or intervene in the social policy plan to ease the situation that has created price hikes.

In October, the government of Kosovo has shared some tools from its Pack for economic recovery, with the support of beneficiaries from social and pension schemes.

The benefits of pension schemes, in November, have received an additional 100 euros on regular retirement, while the beneficiaries of social schemes -- in November and December -- receive double regular payment.

How have northern Macedonia and Serbia intervened in price control?

Northern Macedonia, which has frozen the prices of basic products, in the January-September period of this year has had an increase in the cost of living for 2.8 per cent.

The Macedonian government has decided to freeze the prices of basic products -- bread, sugar, flour, oil, milk, meat, cheese and breast -- at the December 1st level.

The freeze will be valid until January 31st of next year, and that means that traders, within this period, cannot affect prices.

Like Northern Macedonia, Serbia has acted.

The government there has decided on November 30th to freeze prices at the November 15th level for 60 days.

The lift is applied to sugar prices, flour, oil, pork meat, and milk.

Inflation in Serbia in September was 4.3 per cent.