The “Best Price” campaign, aimed at reducing or slowing down the price growth of 86 categories of basic foodstuffs, showed mixed results according to an analysis by Macroeconomic Analysis and Trends (MAT). Launched in cooperation with trade chains from the beginning of September to the end of October, the initiative was presented by Prime Minister Miloš Vučević, who claimed it would save families between 8,000 to 25,000 dinars per month.
The analysis found that the campaign’s effect on consumer prices was minimal, with its impact limited to September. In that month, the price growth of the products involved in the campaign was only 0.08%. However, by October, the effects of the campaign weakened significantly, as the prices of these products rose by 0.3%, outpacing the overall inflation rate of 0.2%. Despite this, the campaign still managed to slow down the price growth of these items, although its impact on overall inflation was limited due to the small share of these products in the total consumer price index (16.5%).
One of the key factors influencing the results was the base effect, as the comparison with lower inflation levels from the previous year played a significant role in the inflation rate. The analysis concluded that 70% of the price changes during September and October were influenced by the slower inflation from the same months in 2023.
Before the campaign, the price growth of the selected products had been slower than that of other goods and services, with an average annual increase of 3.3% compared to 5.2% for all other products. In the months of the campaign, however, the prices of the targeted products rose by 2.2% year-on-year, while other goods saw a 4.8% price increase.
The analysis also identified some specific price changes during the two months of the “Best Price” campaign. For example, cabbage saw the most significant price increase, rising by 49%. Other notable price hikes included milk chocolate, up 5.8%, apples, up 5.3%, and onions, up 3.9%. Conversely, prices for pork meat, down 5.3%, toilet paper, down 4.3%, and tuna, down 3.6%, saw the largest declines.
Of the 86 products tracked in the campaign, 27 experienced price increases, 23 saw price reductions, and 7 remained stable. However, 19 products included in the campaign were not tracked by official statistics, so their impact on inflation remains undetermined.
In summary, while the “Best Price” initiative did manage to slow price growth for certain products, its overall impact on inflation was limited, with broader economic factors playing a significant role in price movements.