
Flash News
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Of the 51 groups of goods and services used to measure average inflation, prices in 34 of them increased more than the average throughout 2024.
According to INSTAT data, in 2024 inflation reached 2.2 percent, but most groups of the basket of goods increased above this level.
According to the graph below, the highest price increases in 2024 were for vegetables (6.2%), air conditioners (5.4%), and hotel accommodation (5.2%). Children's clothing (5.1%), household goods and services (4.8%) also increased above average. The water tariff, which is regulated by the state through the Water Regulatory Authority, has also increased more than average inflation.
Detailed data show that increases above average inflation have been mainly recorded in food and household goods.
All goods and services related to the home, such as household appliances, upholstery, and furniture, have increased by 2.5 to 4%.
On the other hand, during the past year, average prices have decreased for 6 groups of goods and services.
The largest decline was experienced by the "Oils and Fats" group with -2.7 percent compared to 2023, reflecting the high price base in this product after the war in Ukraine where the price of fats in global markets reached a record during 2022-2023.
Prices of means of transport also decreased by 2.4 percent compared to 2023, followed by audiovisual equipment by -2.4%, services related to means of transport by -2.1% and fruit prices that decreased by -0.9%.
Fruits are a major component of inflation in our country, due to their high weight in the basket of goods.
Fruit prices usually increase more than the average inflation rate, but their price also depends on the performance of domestic production. For example, in cases of drought or frost, fruit production is often damaged, as in 2023, and their price increases due to imported supplies.
For 9 other groups of goods and notes, prices have increased less than the average inflation of 2.2% in 2024. Groups such as children's shoes, mineral water, coffee, non-alcoholic beverages, bread, and dishwashers and hospital services have increased less than the average inflation.
The monthly consumer goods basket in our country is still dominated by food. Data shows that about 60 percentage points of inflation are made up of the increase in food prices.
According to INSTAT, food and non-alcoholic beverages account for 40 percent of monthly expenses in Albanian families in 2023. Albania ranks first in Europe for the high share of food in the monthly expenses of its residents, an indicator of the high level of relative poverty./ Monitor.al
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