TIRANA, Feb.11-Inflation for the month of January 2008 rose at three percent, the National Institute of Statistics reported. All the goods in the consumer basket have experienced considerable price changes, some due to the increase in oil prices as well. Three percent is the target for inflation set by BoA. Last year, during the same period, inflation was 2.9 percent. All consumer prices are reported to have gone up by 20 to 30 percent. Oil, grains, and dairy products have increased in price in a chain reaction expected to continue. The price of transportation between cities has also increased due to the increase in fuel prices. The government,in the meantime,has announced that it will compensate citizens for the change in the price of bread and will punish speculators.
Producers and importers alike say that inflation will keep spiraling upwards.
Chain reaction
The increase in prices is behaving like an all cause-effect relationships with grain prices prompting up dairy prices and fuel prompting up services such as transportation. The energy price spike expected in March is also going to influence a wide range of products.
Bread – 25 percent
The price of bread has increased during the last weeks by 20 lek, reaching a record 100 lek per kg and in some parts of Albania even 120 lek. Such an increase has worried the government which has alluded to several options for assisting consumers such as indexing or facilitating for producers.
Energy- expected rise
On March 1, new prices of energy are expected and they will substantially influence consumer purchasing power. All other goods whose cost of production depends on energy are going to be influenced too. It is still unknown whether the cost of energy will increase for bakeries because KESH has actually asked a 50 percent price increase for such businesses.
Intercity transport tickets – 20 percent
Transportation services have also reflected the increase in fuel prices. During the last six months, the ticket prices on inner city buses have gone up by 20 percent. Oil is being sold now at 140 lek per liter.
Wheat – 34 percent
Wheat prices have gone up by 34 percent reaching 200 lek per kg. Sixty percent of the consumed wheat comes from imports.
Pasta- 34 percent
Pasta products are directly dependent on the grain price,hence they have reflected an increase of 34 percent, a spike of prices form 80 to 100 lek.
Dairy products – 10 percent
Different dairy products,which mainly come through imports, have increased at least 10 lek, reflecting an increase in the cost of materials for animal farming. Experts say that if grain prices keep going up, these prices will continue this trend as well.
Vegetable cooking oil – 12percent
Cooking oil, another typical product found in the food basket, has experienced a considerable increase that is being felt by consumers. The price has fluctuated by 20-50 lek or more depending on the specific product made by sunflower seeds or maize. Sunflower oil is being sold at 220 lek per liter while maize oil at 250 lek per liter.
