Rising prices in the country do not seem to have stopped, a trend that has been observed across the globe.

From the beginning of February, fuel prices increased again by 8 lek per liter, reaching record levels, as they are approaching 200 lek per liter.

And not just fuels. In the last months of 2021 and the beginning of 2022, Albanian households are buying almost every product more expensively. In December, inflation, which measures the change in the prices of a basic basket of goods, reached the highest level of the decade of 3.7%, which means that the prices of products consumed by a household in a month are on average 3.7% more expensive.

The graph of annual changes of the Consumer Price Index, by main groups and subgroups (see bottom) shows that the price increase for most products in December 2021 was much higher than the same period a year ago. .

For example, bread and cereals cost 6.3% more expensive, as the price of a loaf of bread from 80 lek became 90 lek.

Meat costs 3.3% more expensive. One kg of meat costs 900 lek, from 800-850 lek that was sold before.

We buy fruits 11.3% more, vegetables and potatoes are 11.7% more expensive. Milk, cheese and eggs were also 3.8% more expensive. Even in cafes and restaurants we pay 3.5% more.

Significant increase in prices were marked "Services to personal vehicles" (+ 13.6%), "Transport" (+ 9%), "Oils and fats" (+ 9.4%), Sugar, jam, honey, syrup, chocolate, and cakes ”(+ 5.6%). You also have to pay more for communication (+ 3.3%). We also have to pay 4.2% more for entertainment and culture.

Cheaper than a year ago are only "Men's shoes" (-0.9%), "Kitchen appliances" (-1.9%), "Purchase of vehicles" (-2.3%), "Heaters and air conditioners" (-1.8% ).

Out of 63 groups and subgroups reported by INSTAT, only for 6 of them there has been a decrease in prices, for two it has not changed, while 87% of them have become more expensive.

The monthly expenses of a family increase by about 3 thousand ALL per month, only from inflation

According to the INSTAT family budget survey, the average family in the country with 3.6 people spent 83.5 thousand ALL per month (data for 2020), of which about 42% go for food and non-alcoholic beverages.

Only in December 2021, when inflation increased by 3.7%, a family spent about 3 thousand ALL more to buy products and provide the necessary expenses for the month.

At the end of the third quarter, according to INSTAT, the average monthly salary per employee was 56.4 thousand ALL, with an increase of 2.7% compared to the end of 2020. With average inflation in 2021 being around 2% (strong price growth started in the second half of the year), the real wage has increased by only 0.7%. If price increases continue at these rates, real wage increases could result in negatives, leading to a slowdown in consumption.

The increase of prices is not stopping even in Europe, broadcast in Albania as well

Inflation in the euro area is estimated to have reached 5.1% in January 2022, from 5% in December 2021, according to preliminary estimates made by Eurostat (European Institute of Statistics), influenced by energy prices.

According to the Bank of Albania, almost half of the inflation is affected by imported prices, to an increase in the Eurozone, which includes the main partners of the country is expected to continue to negatively affect Albania.

Internal factors are also expected to continue to have a negative impact, such as rising costs of agricultural products from frost and fiscal changes. In the share of expenditures, food and beverages in the country account for about 42% of the total (the highest in Europe, which has an average of about 13%), so the rise in food prices has a high impact on inflation.

Although energy prices for the final consumer have not increased, energy prices for about 7400 businesses that should enter the liberalized market have started since January, when these entities will buy energy almost double, which can be transmitted to the cost of products of them.

(Source: Monitor)