Imported food prices fell by 7% in 2024, but were not reflected

2025-02-06 10:13:00, Ekonomi CNA

One kilogram of imported food last year cost 7% cheaper than in 2023, according to official foreign trade data (INSTAT).

In 2024, about 1.3 million kilograms of food were imported from abroad with a value of 156 billion lek. One kilogram of the group "food, beverages and tobacco" cost 120.8 lek in 2024 from 129.8 lek in 2023, a decrease of about 7 percent. Compared to 2022, the price of one kilogram of food and beverages has decreased by an average of 17%.

On the other hand, in 2024, the inflation of the food, beverages and tobacco group increased by 2.7%. Imports are the main component of inflation, as Albania bases its consumption on imports. Imported foods were 2.7 times higher than exports in 2024.

The decline in import prices in food groups last year was favored by two fundamental factors. The first is the exchange rate. The strengthening of the lek against the euro has made imports cheaper, thereby increasing importers' profits.

Secondly, food prices in international markets have continued to decline last year after the crisis they suffered with the start of the war in Ukraine.

However, the domestic retail market is not showing resilience to price changes in international markets, failing to pass on price reductions and exchange rate gains. Food importers and distributors have claimed that they are facing rising domestic costs due to a labor shortage that has forced them to raise wages.

An importer, speaking on condition of confidentiality, said that from the moment of orders to payment for goods, there has been an increase in income of more than 5-6 percent due to the depreciation of the euro. But in the meantime, Albania faces high prices, especially in food products, despite the fact that, unlike the region, it has been favored in exchange rate developments.

Out of 141 European cities, Tirana ranked 92nd for high cost of living according to the index published earlier this year by Numbeo, a global database that measures the cost of living anywhere in the world. The cost of living index is calculated as a percentage of the cost of living in New York.

The high cost of living in Tirana is mostly influenced by food prices. According to Numbeo, in 2025 the food price index marked 42.5%, which means that a resident of Tirana spends 42.5% of the amount a resident of New York spends per month.

The cost of food has a high weight in the cost of living in Tirana, as unlike other European countries, Albanians spend more than 43% of their monthly income on food purchases.

While Albania has the lowest salaries in the Region on average (30% lower) according to official data, on the other hand it has higher food prices.

On the other hand, Albania has the cheapest rental index. The expenses of a resident in Tirana are 13.6% of those of a citizen in New York./ Monitor Magazine