Prices in Albania are increasing much faster than in Europe, in December they became more expensive by 4.5%

While with the beginning of the price crisis in the first part of 2022, Albania stood out as one of the countries with the lowest price increase in Europe, now the situation has completely changed.

INSTAT's data on the harmonized index of Consumer Prices, - which is used to monitor the movement of retail prices in European countries, comparing the percentage of inflation between European countries and as the official inflation of the European Central Bank - show that prices in Albania grew faster in December than in the EU.

The annual change measured by the Harmonized Index of Consumer Prices in December 2023 is 4.5%. While the average price increase in the European Union for December was 3.4%, or 1.1 percentage points less than in Albania.

Albania was ranked the 11th most expensive in Europe for price increases, while a year ago it was among the five countries with the lowest price increases.

This trend is related to the impact of energy, which significantly increased inflation among European Union countries in the first half of 2022, while energy did not increase in Albania. While in recent months, inflation in Albania is being affected by food, which burdens Albanian families more due to the high weight in the total expenses, with 41% of the total, from 13% which is the European average.

Meanwhile, the increase in prices, according to the harmonized index, is higher compared to the standard measurement of INSTAT, according to which the consumer price index was 4% in December. The difference is related to the higher weight of the foods. 

According to INSTAT, for the harmonized index. The biggest price increase of 7.6% is observed in the group "Food and non-alcoholic beverages", followed by the groups "Entertainment and culture" with 6.7%, "Alcoholic beverages and tobacco" with 4.3%, "Furniture, household appliances and maintenance" and "Educational service" with 4.2% each, "Miscellaneous goods and services" with 3.8%, "Hotels, cafes and restaurants" with 3.7%, "Clothing and shoes" with 2 .9%, "Health" with 1.3%, "Rent, water, fuel and energy" with 1.1% and "Communication" with 0.3%. On the other hand, the prices of the "Transporti" group decreased by 2.2%.

In December, the monthly change measured by the Harmonized Index of Consumer Prices is 0.4%. This change was mainly influenced by the price increase of the group "Food and non-alcoholic beverages" by 1.2%, followed by the groups "Alcoholic beverages and tobacco" by 1.1%, "Miscellaneous goods and services" by 0.6% , "Rent, water, fuel and energy" with 0.5%, "Clothing and shoes" with 0.4%, "Furniture, home appliances and maintenance" and "Health" with 0.2% each, "Hotels, cafes and restaurants" with 0.1%. On the other hand, the prices of the group "Transport" decreased by 1.4%, followed by the group "Entertainment and culture" by 0.1%. Monitor