FIGURES/ Eurostat's measurements show a greater increase in prices than INSTAT's reports

2023-09-20 13:36:00, Ekonomi CNA

FIGURES/ Eurostat's measurements show a greater increase in prices than

In Europe, price growth was significantly restrained this year, but in our country, inflation is becoming stable.

According to measurements from the Eurostat methodology, in August 2023, the Harmonized Index of Consumer Prices (HICP) increased by 4.7%, while internal measurements indicate an increase of only 4%.

In Europe, prices rose on average by 5.9%, gradually flattening the differences between price changes with our country.

According to the IHÇK, the biggest increase in prices of 8.2% is observed in the group "Food and non-alcoholic beverages", followed by the groups "Furniture, home appliances and maintenance" with 6.3%, "Entertainment and culture" with 6 ,1%, "Hotels, cafes and restaurants" with 4.6%, "Clothing and shoes" with 4.4%, "Miscellaneous goods and services" with 3.9%, "Alcoholic beverages and tobacco" with 3, 0%, "Educational service" with 2.6%, "Health" with 1.9%, "Rent, water, fuel and energy" and "Communication" with 1.0% each. On the other hand, the prices of the "Transporti" group decreased by 5.6%.

While the monthly change measured by the Harmonized Index of Consumer Prices is 0.4%.

This change was mainly influenced by the price increase of the "Transport" group by 1.5%, followed by the "Rent, water, fuel and energy" and "Furniture, home appliances and maintenance" groups by 0.5% each, "Food and non-alcoholic beverages" and "Educational service" with 0.4% each, "Health" with 0.3%, "Hotels, cafes and restaurants" and "Miscellaneous goods and services" with 0.2% each, "Communication" with 0.1%. On the other hand, the prices of the group "Clothing and shoes" and "Entertainment and culture" decreased by 0.1% each.

The data shows that Switzerland had the lowest price increase, with about 1.9%, followed by Denmark, Spain and Belgium. On the other hand, the biggest increase with about 14% was in Hungary, in the Czech Republic with 10%.

Europe faced high inflation last year at over 12% due to the negative effect of energy prices. At that time, Albania had the lowest rates of price growth. But since inflation in our country is driven by food prices, growth is becoming stable.

The Harmonized Index of Consumer Prices (HCP) measures the change in the level of retail prices of goods and services from the point of view of the structure of expenses which consumers (domestic and foreign) intend for final consumption in the territory of Albania.

IHÇK is used to monitor the movement of retail prices in European countries, comparing the percentage of inflation between European countries and as the official inflation of the European Central Bank, ensuring price stability in the Economic and Monetary Union.

Albania started publishing the IHÇK from January 2017, INSTAT. the index is calculated and published according to the structure of the European Classification of Individual Expenditures with 12 main divisions.

The reference period of the prices is December 2020, while the reference period of the index is December 2020. The weights for IHÇK are calculated in accordance with the Regulation of the European Commission. The weights reflect the structure of final consumption monetary expenditures of Albanian and non-Albanian families in the territory of Albania./ Monitor.al