Prices are continuing to rise more slowly this year. Inflation, the indicator of currency depreciation in relation to price increases, remained at 1.9 percent last month, the same as January.
Compared to February 2024, inflation fell by 0.7 points last month, thus marking the lowest levels ever, writes A2.
Professor Adrian Civici says: "It has already been a year since we entered a stable price cycle. First of all, the main impact has come from the calming of global markets, followed by monetary policies. The policies of the Bank of Albania, the monetary policy that it has followed to increase the base interest rate, accompanied by the calming of the markets where we import, have brought a kind of softening of the inflation rate, bringing it to these levels."
The opposite has happened with inflation in food and beverages. Inflation in this product category increased to 2.8 percent from 2.7 percent in February of the previous year. This performance is reflected even more strongly in the markets where citizens shop.
"Yes, they are 20-30 or even 50 lek more expensive. Vegetables have become very expensive. From tomatoes to peppers. Even dairy products seem to be increasing," say the citizens.
The even stronger increase in prices in the markets than the indicator reported by INSTAT has an explanation.
"In my judgment, inflation in food and beverages has remained at high levels as a result of traders keeping prices high by expanding their profit margins," Civici emphasizes.
Despite the good performance in the last two years, the wave of price crisis in Albania could return. The warning of an even more difficult life comes from the European Commission in the latest report on the country's economy.
"The same factors, such as the calming of global markets, could cause the opposite of this trend if we had a resurgence of conflict hotspots. Markets would be distorted and consequently we would have higher prices," adds Civici.
Meanwhile, despite the increased tourist flows, inflation in bars and restaurants remained at historic lows, averaging 1.8%. (A2 Televizion)
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