Albania’s non-alcoholic drink prices are priced at 96 percent, almost the same to the EU average (100%), and exactly the same as in Netherlands and France
TIRANA, Dec. 8 – Albania’s price level index (PLI) for food and non-alcoholic beverages is 72 percent of the EU 27, considerably more expensive compared to neighbouring Macedonia, an already EU candidate country, whose index was at 52 percent, and even some EU members such as Poland, Romania, Bulgaria, according to Eurostat. Albania’s index in this category is sandwiched between Serbia and Lithuania, where food and non-alcoholic beverages are at 70% and 74% of the EU average respectively, said a recently published Eurostat survey comparing price levels in 37 European countries for 2009.
Albania PLI ranked better than the two other Western Balkan potential EU candidates of Bosnia and Herzegovina and Montenegro whose indexes scored 77% and 79% of the EU 27. Despite significantly lower food and tobacco prices compared to the other 36 countries covered in the survey, Albania’s price levels for non-alcoholic and alcoholic beverages are considerably high compared to some regional and EU countries.
Albania’s non-alcoholic drink prices are priced at 96 percent, almost the same to the EU average (100%), exactly the same as in Netherlands and France, 2 percent higher than in Italy, and considerably more than in Macedonia (63%), Romania (75%), Poland (76%), Montenegro (83%), Turkey (91%). Price levels for alcoholic drinks are slightly lower at 92 percent, but still high compared to many regional and EU countries including Germany at 91 percent of the EU average.
However, Albania’s Price Level Indices (PLIs) of total household final consumption expenditure (HFCE) for four important groups such as food, non-alcoholic beverages, alcoholic beverages and tobacco stands at 51 percent of the EU average, ranking second from bottom in the 37 country list, leaving behind only Macedonia at 46 percent.
The results of the survey also provide an insight into the different sub-groups of products for all participating countries, presenting the PLIs for bread and cereals, meat, fish and dairy products.
Albania’s ‘food,’ ‘bread and cereals’ and ‘meat’ and ‘fish’ prices are relatively low, at 70%, 62%m 64%, 71% of the EU 27 respectively. However, ‘milk, cheese and eggs’ prices stand relatively high at 90 percent of the EU average, considerably higher than in many countries and bottom-placed Macedonia at 60 percent.
The survey also measured Albania’s ‘oils and fats,’ which are relatively high at 93 percent of the EU average compared to 61 percent for “fruits, vegetables and potatoes.”
Referring to the Bank of Albania, the US Department of State says, per capita income was $4,070 in 2009, and is expected to reach $4,200 in 2010, which is far below the EU-27 average. Eurostat data show that across the EU-27, GDP per capita averaged Euro 25,100 in 2008
Inflation rate in check
Albania’s Consumer price index (CPI) continued remaining within the central bank’s 3ѱ percent target band last October, despite a 0.2 percent increase compared to September 2010. Institute of Statistics (INSTAT) data show the CPI increased by 3 percent year-on-year last September. One year ago the change was 2.5 percent, 0.5 percent below the central bank’s lower target.
The 3 percent rate continues keeping the inflation rate within the central bank’s 3 percent target, plus/minus 1 percent, registering one of the lowest rates during the first 10 months of this year. According to the International Monetary Fund, the baseline inflation outlook remains favourable.
Price level indices for Kosovo
In 2009, in the framework of a pilot project, the Statistical Office of Kosovo participated for the first time in the Eurostat-OECD Purchasing Power Parities Programme by carrying out the price survey on food, beverages and tobacco.
Price levels in Kosovo are higher than those of the former Yugoslav Republic of Macedonia, but lower than those of the other Western Balkan countries.
EU Member States
Price levels for food, beverages and tobacco among the EU Member States vary considerably. In 2009, the prices for food and non-alcoholic beverages in Poland were 64% of the EU average, while in Denmark they were 139%. Alcohol was priced in Finland at 170% of the EU average, but at 70% in Romania. For tobacco the highest prices were observed in Ireland (217% of the EU average), while the lowest were recorded in Bulgaria (46%). These are the main findings of the most recent survey on food, beverages and tobacco, carried out in 2009 within the Eurostat-OECD Purchasing Power Parities (PPP) Programme. The survey covered a total of approximately 500 comparable products, enabling all countries to price a sufficient number of products representative of their consumption pattern.
