Harmonized Inflation – Increased by 1.75% over the previous year
Despite higher economic growth, inflation in Albania is close to the EU average.
According to data from the Institute of Statistics, the harmonized index of consumer prices increased by 1.8% for December. This indicator, which aims to yield a comparative price performance with EU countries, has shown a downward trend over the year for the whole of 2018, the annual change in the harmonized index was 1.75%, down compared to the official inflation rate, which for 2018 was about 2%.
A year ago, Albania had the highest rise in prices in Europe, and at present this growth is virtually at the same level as the EU average. The main groups in price increases within the harmonized index are “food and drink” and “hotels, restaurants, cafes”. During December, the annual growth in prices for these groups was 3.1%.
Other groups are making a relatively modest contribution to rising prices. Based on the methodology used by Institute of Statiscs the harmonized index of consumer prices includes expenditures made within the territory of the country by Albanian households as well as visitor costs, while the consumer price index only covers the private expenditures of Albanian families committed within and abroad.