North Macedonia’s government decided on September 20 to cap profit margins at 10% in both wholesale and retail trade.

The measure, aimed at alleviating the rising cost of living, will reduce prices for a range of essential items, including flour, rice, dairy, meats, vegetables and fruits.

The decision proposed by the economy ministry covers 73 food products that make up the so-called "autumn basket" of reduced goods.

It follows the release of data from the statistics office, which revealed a significant rise in living costs between December 2023 and August 2024. Figures show that in that period food costs rose by 4%, with the largest increases seen in fruit (10.9%), milk, cheese, and eggs (6.6%), vegetables (3.9%), meat (3.6%), and bread and cereals (2%), the government said in a statement.

During the same period, the cost of non-alcoholic beverages rose by 9.4%. Mineral water, soft drinks, and fruit and vegetable juices saw an increase of 11.1%, while coffee, tea, and cocoa increased by 7.7%.

The discounted products will be marked with the label "Less costs, more for you". This policy will remain in force until the end of October.

In response to concerns from economists that prices might spike after the measure expires, Economy Minister Besar Durmishi assured the public that by then, the law on unfair trade practices will be enacted. This new legislation will cap discounts on over 2,500 products at 10%, ensuring that prices remain accessible to consumers in the long term, according to Kanal 5.