NEW PRICE INCREASE COMING TO CAFES IN SRPSKA

Inflation in Republika Srpska has not spared the hospitality sector, according to official data. Representatives from the industry are now warning that another price hike is likely on the horizon. This increase is expected to take place at the beginning of the upcoming summer season when many workers from the hospitality sector migrate seasonally to other countries, often along the coast.

PHOTO: Jovan Vidaković

According to the "Information on Macroeconomic Indicators of Republika Srpska," a document from the Ministry of Finance, the cost of dining out in cafes has increased by 10% over the past year.

“The largest price increase, on an annual basis, was recorded in January 2025 compared to January 2024, particularly in the restaurants and hotels sector (9.3%), driven by a 10% price increase in the restaurant, cafe, and bar group and a 7.3% rise in accommodation services,” the report states.

Goran Kurtinović, a board member of the Hospitality and Tourism Employers Association of Republika Srpska "Horeca," estimates that the price increase in the hospitality sector over the past year has likely been even higher than reported by official institutions.

“I believe that all items have seen a price increase of more than 10%,” Kurtinović said in an interview with Nezavisne Novine.

When asked whether another price increase can be expected with the approaching season, which will also bring a shortage of workers in the industry, Kurtinović responded, "Probably."

“We will likely have to promise impossible conditions to retain workers, and this can no longer be covered by employer profits; it will have to be done through price increases,” he predicted.

Murisa Marić, the executive director of the citizens’ association DON Prijedor, described the situation as bad news for consumers.

“The shortage of workers will not be solved by raising prices. This should have been thought about years ago. The price of coffee is still quite high for the wages we have. I believe fewer and fewer people will visit cafes if even higher prices are imposed,” Marić said.

She added that hospitality businesses are also increasingly unable to rely on people from the diaspora during the season.

“Our diaspora, as seen in the past two years, now prefers to go on vacation abroad. Of course, larger cities like Banja Luka may see visitors and some activity, but smaller towns will be deprived of this,” Marić remarked in her statement to Nezavisne Novine.

According to data from the Ministry of Finance of Republika Srpska, consumer prices for goods and services used for personal consumption, as measured by the Consumer Price Index, were on average 1.6% higher in January 2025 compared to the previous month, and 3.2% higher compared to January of the previous year.

“Of the 12 main product and service categories, prices increased in 10, decreased in one, and remained unchanged in one,” the latest report on macroeconomic indicators from Republika Srpska revealed.