Albania’s highest price levels are registered in consumer electronics which are at 1 percent above the EU 27 average, followed by personal transport equipment at 98 percent of the average, and clothing at 77 percent
TIRANA, June 28 – Albania’s price levels for consumer goods and services are among the lowest in Europe but remain high compared to the country’s revenues. A report released this week by Eurostat, the statistical office of the European Union, showed price levels for consumer goods and services in Albania during 2010 were at 50 percent of the EU 27 average, the second lowest in the 37 country list after neighboring Macedonia whose price levels are estimated at 44 percent, and just slightly lower compared to Bulgaria and Serbia at 51 and 52 percent of the EU 27 average respectively. The report covered 27 European Union member countries, 3 EFTA countries, four EU candidate countries and 3 potential candidate countries. Albania’s highest price levels are registered in consumer electronics which are at 1 percent above the EU 27 average, followed by personal transport equipment at 98 percent of the average, and clothing at 77 percent. Food and non-alcoholic beverages are priced at 70 percent of the EU 27 average, the same as EU members Poland, and higher compared to Bulgaria, Romania, Macedonia and Serbia. Alcoholic beverages and tobacco prices, at 51 percent of the EU 27 average, are among the lowest in Europe but higher compared to Macedonia and Serbia. Albania’s restaurant and hotel prices are the lowest in the 37-country list ranking at 42 percent of the EU 27-average. Another report published by Eurostat last week said Albania’s Gross Domestic Product (GDP) per person expressed in purchasing power standards (PPS) in 2010 was less than one third of the EU-27 average and remains below regional competitor Bosnia and Herzegovina. The report placed Albania at the bottom of the 35-country list with a score of 29 percent of the EU 27 average of GDP per capita expressed in purchasing power standards. Latest Eurostat data show Albania’s GDP per capita dropped to 2,661 Euros in 2009, down from 2,784 in 2008, remaining better only compared to Kosovo which registered 1,790 Euros. Bosnia and Herzegovina, which is also benefiting from visa free travel in the Schengen area, had a GDP per capita at 3,192 Euros compared to the EU 27 average of 23,500 Euros. Inflation rate above BoA target Latest data published by the country’s Institute of Statistics show the inflation rate in May 2011 was up 4.2 percent year-on-year, remaining above the Bank of Albania’s 3ѱ target for the fourth consecutive month. One year ago the Consumer Price Index was up 3.3 percent. Domestic agricultural production has continued to contribute positively to lower vegetable prices which dropped by 18 percent compared to the previous month. Diesel prices were down 1.2 percent while petrol prices rose by 0.2 percent. Tobacco and medicine prices also rose by 0.1 and 0.3 percent, respectively. Data from the country’s Institute of Statistics show the Consumer Price Index (CPI) rose 4.5 percent year-on-year in February 2011, exceeding the central bank’s target band by 0.5 percent. In March 2011, the annual inflation rate was at 4.3 percent compared to 4.1 percent in April 2011. Last March, Albania’s central bank decided to raise the repo rate by 0.25 percentage points to 5.25 percent after keeping it unchanged at 5 percent–one of the lowest historic levels– for the past 8 months. Governor Ardian Fullani said the move was aimed at keeping inflation rates in check following a sharp rise in consumer prices.
