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Inflation reaches a record, in June Albanians spent 30 million euros more on food alone

2022-07-11 08:46:35Biznes SHKRUAR NGA REDAKSIA VOX
Inflation reaches a record, in June Albanians spent 30 million euros more on
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With prices rising unstoppably, each household must spend more of its income (which is not rising as fast as prices, or not rising at all), to buy the same products.

According to INSTAT, inflation, which measures the change in prices of a certain basket of goods, was 7.4% in June, the highest level in 20 years.

A year ago, in the same period, the increase in prices was a minimal 1.6%.

Apart from entertainment and culture, every product and service was more expensive this June. The heaviest budget is to feed for two reasons.

- First, because of the high weight of expenses for food. About 42% of the total expenses of an Albanian family go to food and non-alcoholic beverages, a percentage that is the highest in the region and in Europe, according to Eurostat data, referring to the year 2019 and INSTAT for Albania.

As a result, Albanian families have to spend more money to feed themselves than others in the European region, leaving less for other, non-essential needs. As a result, an increase in food prices weighs more heavily on the budgets of Albanian families.

-Secondly, food and non-alcoholic beverages have recorded the second highest growth, with 12.6% after transport (26.9%).

30 million euros more just for food

An average family with 3.6 people spent about 84 thousand ALL per month, according to the INSTAT Family Budget Survey, the latest data of which refer to the year 2020.

About 42% of this amount, or about 35 thousand ALL, is needed by a family to meet the basic needs for food. With the increase of 12.6%, for the same amount of food, a family has to spend almost 50,000 ALL, or almost 5,000 ALL more.

For the 769,000 families in the country, the additional expenditure on food is about 37-38 billion ALL, just for the month of June, or about 30 million euros, which have come out of the family budgets to meet this essential need.

Meanwhile, incomes have not increased at the same rates as prices. According to INSTAT, the average gross monthly salary for a salaried employee, during the first quarter of 2022 (the latest data available), is ALL 59,242. Compared to the same period a year ago, the salary has increased by 5.8%.

The World Bank has warned that high prices will reverse achievements in reducing poverty.

The Bank has signaled that rising inflation could significantly reduce real income growth among poor and vulnerable households and hold back poverty alleviation. Past experiences show that economic growth in the Balkans and especially in Albania has not been translated into a reduction in poverty./Monitor


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