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Eurostat: Albania, fourth in Europe for price increases in October

  • 11/19/2020 2:25 PM
Eurostat: Albania, fourth in Europe for price increases in October

Albania was ranked fourth in Europe for Overall Price Increase in October according to the Eurostat methodology. The annual change measured by the Harmonized Index of Consumer Prices(HICP) in October 2020 is 2.9%.
The largest increase of prices of 6.6% is observed in the group "Food and non-alcoholic beverages", followed by the groups "Transport" with 3.4%, "Alcoholic beverages and tobacco" with 1.5%, Goods and services "various" by 1.1%, "Furniture, home appliances and maintenance" by 0.5%, "Communication" by 0.4%, "Rent, water, fuel and energy" by 0.3% and "Entertainment and culture ”by 0.1%.

On the other hand, the prices of the group "Clothing and footwear" decreased by 0.7%, followed by the groups "Health" and "Educational service" by 0.1% each. In October 2020, the monthly change measured by the Harmonized Index of Consumer Prices is 0.3%. This change was mainly influenced by the increase of prices of the group "Food and non-alcoholic beverages" by 0.8%, followed by the groups "Clothing and footwear" by 0.3%, "Furniture, home appliances and maintenance" by 0.2% , etc. On the other hand, the prices of the group "Entertainment and culture" decreased by 0.3%, followed by the groups "Transport" by 0.2%, "Alcoholic beverages and tobacco" and "Health" by 0.1% each.

In 2017, in order to help policy-making and to achieve a better comparison with other inflation countries, in coordination with Eurostat, INSTAT took steps towards establishing a common methodological basis of member states for construction and the use of the HICP, according to European Council (EC) Regulation no. 2494/95, dated 23 October 1995.

Eurozone inflation is measured on the basis of the HICP indicator. The term "harmonized" underlines the fact that all EU countries apply the same methodology in measuring the respective indicator.

Thus, within this group, the subgroup "Fruits - Vegetables", has a greater weight in the HICP basket (12.84% of the total basket) than in the CPI basket (8.44% of the total).

In conclusion, the subgroup "Fruit-Vegetable" has created 1.3 percentage points or more than 80% of the inflation difference measured by two indicators (3.84% versus 2.38%).

/Klara Ruci/