Monthly deflation, measured by harmonized index of consumer prices, was 0.1 percent in August, while annual inflation was 2.2 percent, according to latest data of the Statistical Office of Montenegro Monstat.
The biggest impact on monthly rate of deflation had fall of prices of vegetables, fruits, books, solid fuels, oils and fats and sugar confectionery.
Deflation phenomenon is opposite of inflation, and indicates general decline in the price level. Deflation, according to experts, behoove to owners of money whose property becomes more valuable, but also reduces consumption, leading to unemployment rising and economic crisis.
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