Albania has high level of harmonized inflation due to expensive food prices

The harmonized index of consumer prices declined slightly in April, but remains at higher levels than the internal index of consumer prices.

The annual change of the harmonized index of consumer prices was reported at 3.6%, in slight decline from the level of 3.8% in March.

Determinant in the relatively high increase of this index was the performance of food and beverage prices.

According to INSTAT, the prices of this group experienced a high growth in April, with 8% compared with the same period of a year ago.

The food group has contributed with nearly 85% in the annual growth of the harmonized index of consumer prices, while other commodity groups had a modest contribution.

According to comparative data with the European Union, Albania has the highest annual price increase, on par with Estonia.

The most determining factor seems to be the increase of food prices, also influenced by the cold winter that has impacted agricultural production.

As a result, it is expected a narrowing of the difference in the level of price growth compared to European Union countries.

The harmonized index of consumer prices aims to provide comparative performance of retail prices between European countries.

This index covers all expenses incurred within the country’s territory by the Albanian families, including visitors’ spending.

Meanwhile, the consumer price index covers only the costs of private Albanian family done both within and outside the country.

However, the reference statistical indicator for price performance in the economy remains the index of consumer prices. According to this index, the annual inflation in April was 1.9%.

SCAN

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