TIRANA, Oct. 10 – Albania’s official inflation rate recorded a 24-year high in September, reaching 8.1 percent, according to the state’s Institute of Statistics, Instat.
The rate, the highest since December 1998, was primarily affected by a sharp increase in food and fuel prices.
Compared to September 2021, the largest increase in prices was seen in transportation costs, with 17.2 percent, followed by food at 14 percent. Alcoholic drinks and tobacco were up 6.5 percent. Hospitality prices — hotels, cafes and restaurants — were up 6.4 percent, according to Instat.
Real inflation in terms of consumer prices being felt by the population could be as high as 12 percent, however, according to some economists.
For example, the sharp increase in food prices is being acutely felt by Albanian families which spend on average about half their income on food.
Oils and fats increased by 30 percent, year over year, for example, followed by milk, cheese and eggs up by 24.0 percent, bread and cereals up by 17.3 percent, meat up by 12.0 percent, and vegetables up by 8.5 percent.
The categories that saw a normal increase of about 2 percent or below included clothing, communications and entertainment.
Economic experts fear real inflation could actually be higher than official figures show and that it could increase at a higher rate in the months to come — a trend seen in several previous months.
Inflationary pressures were the primary reason Albania’s central bank raised its key interest rate by half a percentage point to 2.5 percent last week. The decision marked the fourth consecutive increase of the rate this year, which is now at the highest level since 2014.
