The ongoing crisis in the agricultural sector, marked by a decline in livestock numbers and the abandonment of small plots of land, is being reflected in higher living costs across the country.
Out of approximately 41 staple food products consumed in Albania, 29 have experienced price increases between December 2023 and December 2024, according to a separate list published by INSTAT since 2020, independent of overall inflation.
INSTAT's calculations based on average prices indicate that significant increases have been recorded in products traditionally sourced from the domestic market. The supply shortage in these goods, driven by declining agricultural production on one hand and rising demand due to tourism on the other, has led to soaring prices.
The highest price increase in 2024 was seen in veal, which rose by 95.4 ALL per kilogram, followed by honey with an 80 ALL per liter increase, lamb with an 80 ALL per kilogram rise, and wine with a 63 ALL increase per 750 grams.
Additionally, cheese saw an increase of 54 ALL per kilogram, butter by 44 ALL, olives by 43 ALL per kilogram, and salami by 41.3 ALL per kilogram.
On the other hand, the most significant price decline in value was recorded in oranges, which dropped by 25.6 ALL between December 2023 and December 2024. Other products such as apples, onions, and peppers also experienced price decreases.
A reduction of over 16 ALL per liter was observed in diesel and gasoline, following a drop in global market prices.
A detailed list from INSTAT, reflected in the graph below, shows that the highest percentage price increase in the past year was seen in olives (16.5%), followed by potatoes (16.3%), lemons (over 15%), and tomatoes (around 14%).
The list also indicates that beverages such as beer and wine, along with dairy products like cheese, milk, and yogurt, have significantly increased in price throughout 2024.
Conversely, the largest percentage declines in prices were seen in oranges (-16.7%), dry onions (-14.5%), and apples (-9%). Fuel products, including diesel, gas, and gasoline, also registered a decrease of 6-8.7%.
Due to the ongoing crisis in Albanian agriculture, where production continues to decline year after year, the shortage of domestic products is increasingly being replaced by imports. Food imports have grown at double-digit rates over the past three years, often arriving at higher prices.
As reflected in the data, the most significant price hikes have occurred in products experiencing the sharpest decline in domestic production, such as meat, dairy, and certain vegetables like potatoes and tomatoes.
The increase in both the value and percentage of staple food prices has outpaced pension and wage growth for low-income workers, exacerbating the cost-of-living crisis.