What do we mean by 3.8% inflation? The difference between the decline and the slowdown in price growth

Fluctuations in inflation do not seem to impress citizens as long as it does not translate into spending less money for their pockets. 

3.8% is the lowest rate of price increase since October 2022, when inflation reached its highest level. But do citizens understand what a drop in this indicator means?

If we stop at one of the products, in the specific case the potato, in 2021 if this product was sold for 100 ALL, in October 2022 with inflation of 8.3% it increased to 108.3 ALL. While in 2023, for a 3.8% inflation, the price of this product reached 112.1 ALL. In other words, the price did not decrease but continued to grow slowly.

For the month of October, according to INSTAT, the food group became more expensive by 7.4%. 

"Decreasing inflation means that the pace of price growth is higher, but those that express price increases that are reflected in inflation tend to decrease. Keeping an inflation level of 3% practically and prices are 3% above normal in what is called the equilibrium point in the market", said expert Civici.

Within the food group, different categories continued to increase prices. Vegetables including potatoes with 23.4%, followed by "milk, cheese and eggs" with 8.4%, "meat" with 7.9%, "fruit" with 6.1%, etc.

"What we have a problem with in Albania is that within the general level of inflation, basket products have the highest inflation. And are they and their prices affecting the vulnerable groups and the level of poverty we have today?", Civici added.

According to experts, citizens will continue to face high prices until the Bank of Albania's target of 3% is reached. (A2 Televizion)