Inflation reaches 7.5%, July marks record-breaking price level for food products

BIE BESIMI GUSHT frame 286 1280x720 1 1100x620

The price growth has not stopped. According to INSTAT, inflation reached 7.5 percent in July, up 0.3 percent from June of this year. Food and non-alcoholic beverages are the most rapidly growing product categories, up 13.2 percent from July of last year.

Fuel costs remain above the historical norm, but inflation in this area has reduced by 3.7 percent since June. Worrying is the 0.7 percent increase in rent, fuels, and energy, followed by the Hotels, cafes, and restaurants category.

The Bank of Albania forecast a tightening of consumer prices, with a stabilization only at the beginning of 2024, with the return of stability in foreign markets.

Since August 1, the price of milk and its byproducts has risen by approximately 20 percent. Consumers are finding it harder to purchase things that qualify as everyday necessities.

Citizens are lowering their consumption as a result of the ongoing price hikes.

Why was there an increase in the market price of milk and by-products?

The challenges faced by the milk processing industry, as well as the cattle industry as a whole, have resulted in the depletion of food stocks.

Subsidizing livestock farmers per liter of milk and lowering sales VAT to 6% is viewed as a middle-ground solution for the sector.