The Average Food and Drink Inflation Rate Is Not Justifiable Using the Pension Indexing of 8.6%

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Age-related increases in food prices, medical costs, energy and water bills, and other expenses make living harder for the elderly. Senior officials’ wages have increased significantly as a result of the government’s goal of raising the minimum and average salary, which pensioners see with skepticism. They are unhappy because, starting on October 1, seniors in urban areas would receive an additional 1,500 lekë, whereas seniors in rural regions will only receive a 900 lekë boost.

The data provides the explanation. Since October 2022, the average rate of inflation for food and drink has been 11.6%. Compared to the 8.6% pension indexing, this is a higher level. Thus, in the opinion of economists, this ratio does not equate to support for this group.

“The ratio is insufficient and cannot keep up with the ongoing price increases. Because family economies and their budgets, particularly for elderly, incur additional costs for medications in addition to necessities,” economics expert Eriola Hoxha stated.

The acknowledged but unresolved fact is that the pension and social insurance contribution scheme is the source of the impasse.

Pensioners’ monthly income does not grow significantly as a result of frequent indexing. We need to build long-term programs in the face of impossibilities, as the social insurance and pension contribution schemes are currently in disarray. She continued, “We shouldn’t rely on this ratio to anticipate indexing once or twice a year.

The nation’s pensions were last indexed in October of last year, at a rate of 6%. Expert Hoxha believes that establishing the minimum subsistence level will help other social classes, including retirees, deal with the volatility of inflation. Bonuses have been used by the government to act, such as the one in April that delayed pension indexing until October.”