Serbian President Aleksandar Vučić announced that starting September 1, the government will introduce a package of measures aimed at lowering prices of essential products by limiting retailer profit margins. The goal is to force traders who unfairly raise prices to reduce them.
This follows previous government campaigns—”Better Price” in 2023 and “Best Price” in 2024—which aimed to offer discounted basic food and household products to citizens amid inflation caused by the war in Ukraine and supply chain disruptions. Despite these efforts, trade chains have not played fairly, leading the Serbian Competition Commission in October 2024 to investigate four major retailers (Delhaize Serbia, Mercator-S, Univerexport, and DIS) for allegedly coordinating prices on basic food items, potentially inflating costs.
Consumer protests and boycotts against retail chains have occurred due to higher prices in Serbia compared to Europe, but inflation remains high. According to the Republic Statistical Office, consumer prices in June 2025 rose by 4.6% year-on-year, with food and non-alcoholic beverages up 7.4%, including a 31.6% increase in fruit prices and 29.1% rise in coffee, tea, and cocoa. Housing and utilities also increased by 3.4%. Electricity prices are expected to rise by at least 7% from September, further impacting household budgets.
Economist Aleksandar Stevanović criticized the proposed margin limits as ineffective and potentially harmful, warning that price controls could impoverish society and cause shortages. He argued that the government should address the root causes of high prices, such as import costs, market competition, and unproductive expenses, rather than just the symptoms. He also questioned the effectiveness of the Competition Commission in tackling oligopolistic practices and stressed the need for structural reforms to reduce costs and increase competition to lower prices sustainably.
