The Serbian government has introduced a new “Best Price” campaign, an upgraded version of the previous “Better Price” initiative, aimed at addressing the rising cost of living. Unlike its predecessor, which was primarily focused on controlling inflation, the “Best Price” campaign seeks to enhance the standard of living for citizens. This new campaign will run from September 1 to October 31 and will include a broader selection of products but for a shorter period.
The initiative will feature 81 product categories, which amount to approximately 700 items, available in 2,500 stores nationwide. These products will be offered at an average discount of 26.82% compared to their regular prices. The “Best Price” items will include a variety of food products—such as meat, dairy products, fruits, vegetables, cereals, coffee, and honey—as well as household cleaning products. According to Prime Minister Miloš Vučević, this will enable citizens to save between 8,000 and 22,000 RSD per month.
The campaign has secured participation from nine major retail chains, which have agreed to offer these products at prices significantly lower than their usual promotional discounts. The discounts were set based on the current highest and lowest prices of products in stores, providing broader and deeper reductions compared to the previous “Better Price” campaign.
The Statistical Office of the Republic of Serbia’s analysis of the earlier campaign, which lasted from September to December 2023, found that it successfully slowed the year-on-year inflation rate by approximately 18.1% or 0.3 percentage points from October to November compared to September 2023.
Prime Minister Vučević explained that the “Best Price” initiative includes various types of cheese, with specific price reductions decided by each retail chain. He noted that not all chains have chosen to offer the best prices for identical products like milk or yogurt.
He clarified that while the government suggested the involvement of retail chains in reducing prices for 81 product categories, the exact discount levels were determined by the retailers. He also addressed concerns about the disparity in dairy product prices between Serbia and neighboring countries, indicating that price formation is a complex issue influenced by multiple factors and not easily addressed.
Vučević emphasized that price determination involves several elements beyond just the retailers, and the government cannot impose uniform prices for all products. While there are regulated categories with government-set prices, this campaign aims to create a market balance.
Looking ahead, Vučević promised further measures to support citizens and ensure that retailers do not gain excessive profits. He stressed the need to carefully prepare policies to maintain market economy principles and prevent hindering business operations.
Food prices in Serbia have increased by 57% since before the pandemic and are now at 95% of the European average. Given that food constitutes nearly half of the minimum consumption basket and 40% of average expenses, the reduction in essential food prices is expected to positively impact the population. The record profits reported by retailers in 2023 and their willingness to adjust prices raise concerns about potential non-market behavior.
In 2023, the retail sector in Serbia reported a profit of 194.4 billion RSD (approximately 1.6 billion euros), according to the annual report from the Business Registers Agency on the Serbian economy.
