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Inflation fell to 1.9% in January, food remains expensive

2025-02-13 15:55:11 / EKONOMI&SOCIALE ALFA PRESS

Inflation fell to 1.9% in January, food remains expensive

Prices are rising more slowly this year. Inflation, the indicator of currency depreciation in relation to price increases, fell to 1.9 percent last month from 2.1 percent at the end of last year. Compared to January 2024, inflation was halved last month, thus marking the lowest levels ever.

"It has already been a year since we entered a stable price cycle. First of all, the main impact has come from the calming of global markets, followed by monetary policies. The policies of the Bank of Albania, the monetary policy that it has followed to increase the base interest rate, accompanied by the calming of the markets where we import, have brought a kind of softening of the inflation rate, bringing it to these levels," said economic expert Adrian Civici.

Data from the Institute of Statistics show that last month, food and beverages also became more expensive at a slower pace. Inflation in this product category fell to 2.6 percent from 5.3 percent in January a year ago. Meanwhile, in the markets, the rates of price increases are resulting significantly higher than those reported by INSTAT.

"Yes, they are 20-30 or even 50 lek more expensive. Vegetables have become very expensive. Q1% from tomatoes, peppers. Even dairy products seem to be increasing."

So why is there still no price stabilization in the markets?

"In my judgment, inflation in food and beverages has remained at high levels as a result of traders keeping prices high by expanding their profit margins."

Despite the good performance in the last two years, the wave of price crisis in Albania could return. The warning of an even more difficult life comes from the European Commission in the latest report on the country's economy.

"The same factors, such as the calming of global markets, could cause the opposite of this trend if we had a resurgence of conflict hotspots. Markets would be distorted and consequently we would have higher prices."

Meanwhile, despite the increased tourist flows, inflation in bars and restaurants remained at historic lows, averaging 1.8 percent./ A2CNN

 

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