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Ekonomia

Bulemeti unbalances the domestic market prices, annual increase of 28% in February

 

Bulemeti unbalances the domestic market prices, annual increase of 28% in

Milk and livestock by-products are considered as products that unbalance the economy of the local market.

Inadequacy of dairy supplies is increasing the prices of milk and its by-products from month to month, as domestic products are now being competed by prestigious import brands.

INSTAT data show that in February 2023 the prices of milk, cheese and eggs experienced an annual increase of 28%, the highest rates than in all other items of the basket. Compared to last month, milk and cheese prices increased by 1.4 percent.

The structural problems of agriculture and livestock are becoming the cause of price disturbances coming from internal markets. But also the prices from the international markets are transmitted at higher levels than the real changes.

 

The second group with the largest increase in prices was "oils and fats" with an annual increase of 17.4%, influenced by milk due to the high increase in the price of domestically produced butter.

In February, fish had the third highest rate of price increase, with 16.3% compared to February 2022. Further, bread, meat and sugar and other processed foods grew at double-digit rates of 13-15% .

In the vast majority of 46 groups of goods and services, the increase in prices has been at historical records above the Bank of Albania's inflation target of 8.3 percent.

Of the services, the transport sector had the highest growth with 9.3%, as a result of the increase in the price of oil to historical records after the war in Ukraine.

In contrast, there were only a few items that had suffered price reductions. Vehicles, entertainment services and audio-visual parts and fruits recorded declines.

The International Monetary Fund recently assessed that the effects of inflation in Albania and the Balkans are harsher than in the EU, as growth is driven by food prices, unlike Europe which is influenced by energy.

The weight of food in the monthly expenses in the Balkans is 42 percent of the monthly expenses, notes the IMF study. Data from the 6 countries of the Western Balkans (Serbia, Albania, Bosnia, Macedonia, Montenegro and Kosovo) show that the increase in prices has been stronger for the group of food products, making the increase in prices more severe in a Region where poverty is still at high levels./Monitor/

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