In January, prices in Serbia increased by 4.6% compared to the same month last year, according to reports from the National Bank of Serbia (NBS).

The central bank maintains an expectation that inflation will remain within the targeted corridor, not exceeding 4.5% by the end of this year.

Global economic trends such as 'cheapflation', 'gridflation', and 'shrinkflation' are amplifying pressures on Serbian consumers.

Notably, the phenomenon of 'cheapflation' indicates that cheaper goods are becoming more expensive at a faster rate than higher-end products.

For instance, the least expensive cheese has seen a price increase of up to 5%, outpacing that of pricier alternatives, primarily due to the lower price elasticity of demand for cheaper products.

Economic researcher Dragan Dživdžanović from the NBS pointed out the socio-economic implications of 'cheapflation', suggesting that lower-income groups are disproportionately affected as they tend to purchase more affordable brands.

Additionally, 'gridflation' reflects companies increasing their profit margins by passing higher costs onto consumers, a trend observed across various sectors.

Another related phenomenon, 'shrinkflation', refers to a consumer purchasing a product of lesser volume or quantity for the same price.

This often goes unnoticed by shoppers, though it has a tangible impact on household expenses.

Dr. Veljko Mijušković, an economics lecturer, noted that consumers might find it challenging to detect a decrease in product quality alongside reduction in quantity, which can form a hidden cost.

The ongoing inflationary pressures manifest in daily purchasing behaviors, prompting experts to advise consumers on strategies to mitigate financial strain.

Tactics include comparing prices in relation to product volume and maintaining awareness of nutritional composition.

Additionally, online price comparisons and bulk purchases are suggested as methods to save costs during these challenging economic times.

In related labor market developments, employers in Croatia and Montenegro are actively seeking seasonal workers from Serbia, particularly for roles in tourism and hospitality.

High demand exists for positions such as cooks, waiters, bartenders, and receptionists, with salaries reaching up to €3,000 per month.

Reports indicate a shortage of around 55,000 to 65,000 seasonal workers is anticipated in Croatia alone.

Data from Montenegro similarly indicate a need for approximately 20,000 seasonal workers, with Budva's hospitality sector reportedly requiring at least 8,000 workers this coming season.

The highest salaries within this sector are being offered to chefs, who can earn between €1,800 and €2,500, while kitchen supervisors may earn up to €3,000.

Varied roles within hospitality indicate robust demand, and many employers are offering accommodations and meals to reduce employee expenses.

Lastly, new fuel prices effective March 28, 2025, have seen diesel priced at 196 dinars per liter, an increase of one dinar, while the price for premium gasoline rose by two dinars to 183 dinars per liter.

These price adjustments follow a backdrop of fluctuating global crude oil prices, with Brent trading at approximately $73.73 per barrel.