TIRANA, July.17- in a report recently published by the European Institute for Statistics, EUROSTAT, prices in Albania are far too high compared with other countries in the western Balkans and even compared to some EU member countries.
The report investigated different price categories for 37 countries out of which 23 are EU member states, 3 are candidates and 4 are in the WB region.
Food and beverages
The inflation in Albania has been completely under the control of the target values set by Boa for the last decade. Nevertheless, prices in Albania are considerably higher, starting from the most consumed category of goods, food and beverages.
Albanian food prices are 30 percent higher than those in Bulgaria and Macedonia. Prices are also higher than in some of the EU member states. For example Albanian prices are 13 percent higher than those in Lithuania and eight percent higher than in Poland.
The Serbian case is striking. Despite difficulties caused by embargoes and conflict, Serbia has a competitive edge and thus prices 13 percent lower than in Albania.
Lower prices have been observed even in Hungary, Rumania, Bosnia and Herzegovina, the Czech Republic and Latvia. The lowest prices in the region belong to Macedonia and Bulgaria, which are half of the average of the EU.
Dairy products
Despite high level of local production, dairy products in Albania are more expensive than in many countries of the region. For example prices are 35 percent higher than in Macedonia and 26 percent higher than Poland. Serbia, Montenegro and Bosnia Herzegovina also have lower prices for this category of goods, respectively 12 percent, 9 percent and 10 percent lower.
EU member countries that have lower dairy prices than Albania also include: Slovakia, Finland, Holland, Hungary, Latvia, Lithuania, Estonia, Bulgaria and the Czech Republic.
Meat
Meat is one of the most commonly consumed goods in Albania. Still, compared to neighboring countries, meat is more expensive; 17 percent more than in Macedonia, 20 percent more than in Poland and 30 percent more than in Bulgaria.
The price remains higher even when compared to the Czech Republic, Cyprus, Rumania, Slovakia and Lithuania. Only Montenegro and Serbia have higher meat prices.
Alcoholic drinks, luxury prices
This is the category where the index compiled by EUROSTAT is very close to the average of the EU countries. An alcoholic drink on average will cost 48 percent more in Albania than in neighboring Macedonia, 40 percent higher than in Bulgaria and 32 percent more than in Serbia, 27 percent higher than in Montenegro, and 24 percent higher than in Bosnia-Herzegovina. Even compared to many of the European countries like Slovakia, Slovenia, Rumania, Poland, Austria, Holland, Hungary, Luxemburg, Lithuania, Latvia, France, Spain, Estonia, Germany; Albania has more expensive drinks.
Cigarettes
The report from EUROSTAT explains that cigarettes in Albania, despite being below the average price of the EU countries, are still very expensive compared to other countries in the region. They are 38 percent more expensive than in Montenegro while compared to Serbia the figure is 23 percent. The EU has very strict policies to discourage tobacco consumption which keep cigarette prices in the member states very high.
Abusive price levels
There are multiple factors behind the high prices that the report has identified throughout the region. Economic experts say that agricultural prices are kept high by the seasonal character of the industry. Albania agriculture remains underdeveloped and fragmented with most products still being imported to satisfy local demand.
One of the basic problems that lead to an increase in price through its chain effects is construction, which according to experts is in the phase of a bubble, given its incredibly high prices.
Lack of electricity while oil prices are at an all-time high is also affecting many products such as bread and baked goods, which are produced at higher cost, hence, sold at higher prices. Alcoholic drinks are sold at high prices due to the continuous rising excise taxes imposed on them by the customs offices.
