A new regulation in Serbia, effective from September 1, caps retail margins at 20% for 23 groups of products, including food, personal hygiene, and household chemicals. The rule also freezes supplier prices at levels valid on August 1, 2025, giving the state full control over pricing.
Economists warn that this “price freeze” could pressure suppliers, reduce product quality, shrink packaging sizes, and potentially cause shortages if costs rise. While some price reductions of 10–20% have already occurred, retailers like Delhaize (operator of Maxi stores) report negative impacts on operations, logistics, supplier relations, and investment plans.
The measure is temporary, but experts highlight risks of long-term supply issues and lower-quality products, despite the government’s goal to protect consumers and lower prices.
