Food prices increased

But while the average inflation indicator seems under control, prices for some basic goods have increased with a record-breaking speed. The Institution of Statistics announced that food prices in June increased with a record-breaking pace. The Institution of Statistics declared that prices of food and non-alcoholic beverages in June were 5.4% higher than one year ago.

The tendency started on January of this year, and for six months the annual food inflation has fluctuated from 5 to 6%. This is among the highest growth of the recent years, which can be compared with the food crisis of 2008.

According to Institution of Statistics, the increased food price is due to strong price increase of basic fruit and vegetables, which in June are 30.6% more expensive than one year ago. Due to this tendency, the Institution of Statistics figures show that the increased cost of living is mostly due to the increased price of food.

Food products are the most important element of the Albanian family budget. The Institution of Statistics says that every family in Albania spends in average 39.3% of its budget for food, a number which still is in an average level. For poor families, the weight of the budget that goes for basic food is twice higher.

This means that one family of low income could need 80% of the incomes for just basic food. Because this figure changes according to the incomes, in many countries governments publish more than an indicator for inflation. If Institution of Statistics would do the same thing today, inflation for poor families would not be 2.3%, as the official government numbers, but 4.3%. The crisis has already decreased the incomes, and a parallel increase of the living cost would make the worst combination that hits mostly the poor people.

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