Experts say price spike is speculative

TIRANA, Sept. 25-The substantial price increase that has been observed in the Albanian market, especially in the food sector, has concerned experts who say that the phenomenon will have a chain effect throughout the economy. Head of the GTZ program for North Albania , Ismail Beka, raises the concern about the food processing industry that will have difficulty in purchasing supplies at current prices, thus will try to seek cheaper imports, hurting the domestic producers.
Executive Director of the Albanian Association for Dairy and Meat products (ADAMA), Merita Uru詬 explains that the rising costs of the primary materials of the industry is unaffordable and will drive up the prices of final products. The minimal increase is estimated to be around 15-20 percent, according to Uruci, mirroring the spike in the cost of raw materials. Previously, the explanation for this increase has been connected to shifts in international markets. Domestic experts, though, have expressed a different opinion, claiming this is speculation on the side of Albanian gross traders. ” I believe this price increase wave is unjustifiable and cannot be explained through arguments such as the rising price of oil in the stock exchange. The international price changes of oil and grain would need one year to be reflected in our economy, hence I believe the price increase in Albania is speculative. This is assisted by the lack of a mechanism of market controls on the side of the administration,” Beka concluded.