COVID-19 has changed nearly every aspect of daily lives, and consumer spending is no exception. Fear of a second isolation of the country as a result of the pandemic, has made citizens save and not spend, except for food. In general, spending is down across all industries in Albania.

According to the latest INSTAT report, it is said that inflation has dropped to 1.4% from 1.5% in July last year regarding consumer prices. This indicator in June was at the level of 1.8%, again very far from the Bank of Albania's target for inflation of 3%.

Reduction of inflation to these levels is an indication that consumption is not making progress, even though the country has emerged from isolation. During July of this year, Albanian citizens have chosen to save in terms of buying basket products as prices in this category compared to June have fallen by 1.3%.

Citizens have also chosen not to spend on entertainment and culture as well as home furnishing. While the sectors that have had a price increase have been the group of transport, goods and services as well as alcoholic beverages.

The lack of consumption is not due to high prices but due to falling incomes, rising unemployment and uncertainties about the future, according to INSTAT.