In March, the cost of a basket of basic foodstuffs increased by 5.7%, the highest amount in twenty years, with cereals and bread witnessing the most significant increase of over 6.6% during the same period.
Following the onset of the Russian invasion of Ukraine, the cost of fuel, energy, and food has increased significantly both in Albania and further afield.
According to the Consumer Price Index, some items, however, have experienced much more significant price increases.
For example, the cost of petrol peaked at EUR 2.14 per litre in March, sparking nationwide protests. Despite the presence of a government board to monitor the cost of fuel and prevent market manipulation, the cost is still EUR 1.80, some 20% higher than January and 40% higher than March 2021.
As for cooking oil, particularly sunflower oil, this increased by 22.4% during March, costing around EUR 2.64 per litre. This situation is expected to continue due to a shortage of sunflower seeds as Ukraine and Russia are both leading producers.
Bread now costs EUR 1, up from EUR 0.66 per loaf. This increase has been driven up by the rising cost of cereals due to supply shortages. Before the war, Albania imported 46% of its grains from Russia and 36% from Serbia. Furthermore, with the current prices, Albania is ranked as a country where citizens pay among the highest prices for bread compared to their income.
Dairy products have also gone up in price with an increase of just over 10%. This is caused by the increased cost of animal feed, fertilisers, transport and energy. The growth has been exacerbated by bird flu, which saw hundreds of thousands of birds be slaughtered when it comes to eggs. Monitor.al said that dairy processing factories have seen their costs increase by 20% over the last month, so prices are set to continue rising.
As for fruit and veg, they have risen by around 10.5%, mainly due to increased fertiliser and transport costs. Tax and VAT increases have also hit farmers hard, leading to closing profit margins.
The crisis has also hit Albania’s fashion industry. Clothes shop owners on Myslym Shyri street in Tirana told Monitor their turnovers are minimal compared to last year and there is potential uncertainty over supplies in the future. But some shops, such as those that sell second-hand goods, have seen an increase in turnover, particularly amongst women aged 25-40.
