All of Europe has faced rising prices over the past 12 months, but the effect is strongest in Albania and the Balkans.

This is due to the fact that, unlike the European Union, which has seen high inflation in energy bills, in our region it has been led by the increase in food prices. The conclusion comes from a study by the Monetary Fund on the effects of inflation in this period, which is recorded at the highest levels since 1990.

In the Balkans, 42% of monthly expenses go to food, notes the IMF study, and as a result, this affects the deepening of poverty. Food prices in the Balkans have increased at higher rates than in the EU for three main reasons according to the IMF: First, a higher transmission of food prices from international markets due to the high weight of imports. Secondly, the structural problems of agriculture in the region become the cause of price disturbances coming from the internal markets.

Thirdly, climatic changes with drought and lack of rain damaged many local products, especially in Bosnia and Serbia.

The Fund recommends that the economy of Albania and the region deserves further attention.