In Serbia, food prices have surged dramatically in recent years, with basic staples becoming increasingly unaffordable for many. Just six years ago, consumers could purchase two liters of milk and a loaf of bread for under 190 dinars; today, the same items cost over 400 dinars. Despite nominal increases in wages and pensions, which grew from 54,919 dinars to 98,143 dinars between 2019 and 2024, and from 26,343 to 50,687 dinars for pensions, prices for essential food items have risen far faster.
For example, the price of bread has doubled from 35-38 dinars to 80-90 dinars, while milk has increased from 75 to 160 dinars per liter. Even basic items like edible oil have seen price hikes from 135 to 240 dinars. In March 2024, food and non-alcoholic beverages were 4.8% more expensive than the same month in 2023, and coffee and tea saw an eye-watering increase of 21.3%.
Although the government touts “record economic growth” and higher wages, the reality for most consumers is stark. The minimum wage, despite rising from 15,700 dinars in 2012 to 53,592 dinars in 2024, still falls short of covering the cost of a minimum consumer basket, which was valued at 55,085 dinars in January 2024. Many families, especially those living on minimum wage, now rely heavily on loans to make ends meet.
Inflation in Serbia has outpaced that of the EU, with prices rising twice as fast. In 2023, food prices in Serbia were just 4% lower than the EU average, and the gap may have closed since. Food imports have also increased significantly, with Serbia spending almost 2.9 billion euros on food imports in 2023. Meanwhile, domestic farmers face challenges, with many turning away from agriculture due to low profitability.
Despite the challenges, the government has failed to implement policies that support local farmers and curb price hikes. The rise in food prices is exacerbated by the dominance of large retail chains, which control around 80% of the market, and the continued neglect of agriculture. Farmers’ protests have become more frequent, but little has been done to address their concerns or provide the necessary support.
The government’s “Better Price” and “Best Price” campaigns, while well-intentioned, have done little to mitigate the rapid rise in food prices. Without substantial reforms in agriculture, food production, and pricing regulations, Serbia’s consumers will continue to struggle. If nothing changes, the country’s food prices could soon rival those of Western Europe, while wages remain comparable to less developed nations.
The key question remains: will the government prioritize domestic food production and consumer protection, or will Serbia continue to import its way into economic dependency, leaving citizens to suffer under the weight of rising food prices?
