Every day we are witnessing a rapid increase in prices in all segments. From today, new fuel prices. According to information on the development of prices and margins, which the petrol stations submitted to the Federal Ministry of Commerce, the price of fuel in the Federation has increased by an average of seven pfennigs per litre.
From January 1, due to the increase in the wholesale price, gas is also more expensive for households. Like of next month, gas users in the Canton of Sarajevo (CS) eexpect bills to increase by around 10% or even 30% if the CSgovernment does not continue the subsidy for price increase from November last year. A Ithe price increase is nothing new for citizens. In the year behind us, food prices, drinksfuel, accommodation, and transport services have increased.
The Pthe rice increases that have officially started January 1stst include changes in prices of petroleum and petroleum products, electricity, gas, and real estate. Unlike previous years, this year the price of cigarettes remains the same. The growth of chain prices in our country is very noticeable. This is especially evident when it comes to staple foods, especially oil and chicken. Oil rose 37%, flour and bakery products 12% and chicken meat an incredible 66%. For example, in May, one kilogram of chicken fillet has been 6.50 BAMand in September 9.70 BAM.
The syndicate’s consumption basket for November stood at 2.190 BAM. The question is how to deal with rising prices when the average salary in the Federation of Bosnia and Herzegovina(FBiH) is 998 BAM. Citizens noted they just have to fight.
Economic analysts agree that the economy has become hostage to politics, according to which only political actors have a way out bad economic situation.
“For the economic situation in Bosnia and Herzegovina, as well as all political developments over the past six months, wwe can say that it is very bad. The political crisis, perhaps the most important after Dayton, is definitely a situation that is not at all stimulating for young people, it is not stimulating for foreign direct investment,” said Hatidza Jahic, professor at the University of Sarajevo (UNSA) Faculty of Economics.
The statistics show how worrying the situation is. Namely, according to the analysis of Eurostat, the statistics agency of the European Union (EU)BiH is second to last when it comes to the purchasing power of citizens, with 33% from the EUmedium. But there is some solutions.
“The short-term solution involves activating the system of raw material reserves in the sense that these systems – whether at the level of the cantons or the entities – try to protect 20 to 30% of the population, the most vulnerable , those with minimum incomes – pensions, salaries or, for example, some short-term employee or people in a situation of social need. Types of longer term solutions are related to improving the business opportunity – in terms of alleviating some costs, tax, to free up space for the economy to compensate for them When it comes tooffering a lower price of final products and services, “explained aeconomic analyst Admir Cavalic.
What is certain is that with a better strategy, we can overcome the challenges of rising prices. Improvement come when we start using the potential we have, material and human, and stop importing goods we already have.