As the crisis of rising prices began in the first half of 2022, Albania stood out as one of the countries with the highest inflation rates in Europe; however, the situation has now completely changed.
Data from the Institute of Statistics (INSTAT) for the Harmonized Index of Consumer Prices – used to monitor the movement of prices with a minority in European countries by comparing the inflation percentage between European countries and as the official inflation of the European Central Bank – show that prices in Albania rose faster in December than in the EU.
The year-on-year change measured by the Harmonized Index of Consumer Prices in December 2023 is 4.5%. While the average inflation rate in the European Union for December was 3.4%, or 1.1 percentage points less than in Albania.
Albania ranked 11th in Europe for the most expensive inflation, whereas a year ago, it was among the five countries with the lowest inflation rates.
This trend is related to the impact of energy, which significantly increased inflation in European Union countries in the first half of 2022, while energy did not increase in Albania. In recent months, inflation in Albania has been influenced by food, which weighs more on Albanian families due to its high proportion in total expenses, accounting for 41% of the total, compared to the European average of 13%.
Meanwhile, the price increase, according to the harmonized index, is higher compared to INSTAT’s standard measurement, according to which the consumer price index was 4% in December. The difference is due to the higher weight of food.
According to INSTAT, for the harmonized index, the highest price increase of 7.6% is observed in the group “Food and non-alcoholic beverages”, followed by the groups “Recreation and culture” with 6.7%, “Alcoholic beverages and tobacco” with 4.3%, “Furniture, household appliances and maintenance” and “Educational services” with 4.2% each, “Goods and various services” with 3.8%, “Hotels, cafes and restaurants” with 3.7%, “Clothing and footwear” with 2.9%, “Health” with 1.3%, “Rent, water, fuels and energy” with 1.1%, and “Communication” with 0.3%. On the other hand, prices in the “Transport” group fell by 2.2%.
