Food prices/ Albania the most expensive, rising five times faster than the EU in July

The sharp fall in the euro this summer should have helped lower the prices of imported products, but according to Eurostat data, food and non-alcoholic beverage prices in Albania rose by 3.2% in July 2026 compared with the same month a year earlier—five times more than in the European Union, where prices increased by just 0.6%.

Eurostat data show that pressure on food prices is moving in opposite directions. In Albania, the annual rate accelerated from 2.9% in June to 3.2% in July, while in the EU it slowed from 1% in June to 0.6% in July.

Eurostat’s ranking shows that Albania had the fifth-highest food inflation rate among 36 European countries. Higher rates were recorded only in Turkey, at 37.6%; Romania, at 4.6%; Cyprus, at 4.5%; and Iceland, at 4.4%.

Food accounted for nearly one-third of inflation

Overall harmonized inflation in Albania reached 3.4% in July, up from 3.2% in June. Food and non-alcoholic beverages made the largest contribution, accounting for 1.09 percentage points, or nearly one-third of the overall increase in prices.

This is also linked to the large share of food in Albanian consumers’ spending. According to INSTAT, food accounts for 34.46% of the basket used to calculate the Harmonized Index of Consumer Prices.

In the European Union, overall inflation stood at 3% in July, just 0.4 percentage points lower than in Albania. However, the difference in food prices was much greater.

This shows that inflationary pressure in Albania is more concentrated on basic consumer products than in most of the EU.

Albania records the highest increase in the Western Balkans

In the Western Balkans, Albania had the highest annual rate of food price increases in July 2026.

It was followed by Kosovo at 2.7% and Montenegro at 2.3%, while food prices in North Macedonia and Serbia were lower than a year earlier.

In Serbia, prices in July 2026 were 5.6% lower than in July 2025, while in North Macedonia they were 0.3% lower.

Throughout 2026, Albania recorded food price increases every month that were significantly higher than the EU average.

Compared with nearby EU member states, the increase in Albania was also higher. In Bulgaria, food prices rose by 1.2%, while in Croatia and Greece prices fell by 0.1% and 0.4%, respectively.

Food prices: Albania more expensive than the EU

Albanians continue to have some of the lowest incomes and purchasing power in Europe, but when it comes to food, they are paying prices higher than the European Union average.

According to the latest Eurostat data, food prices in Albania reached 102.9% of the EU average in 2025, up from 99.6% a year earlier.

This means that a food basket costing 100 euros in the EU costs an average of 103 euros in Albania, measured according to purchasing power.

Meanwhile, Albanian per capita income remains at just 43% of the European average, while per capita actual individual consumption stands at 48%. Albania ranks among the lowest countries in Europe for these indicators, ahead of only a few countries in the region.

The gap between prices and incomes is becoming increasingly evident. Although Albania remains one of the most agricultural countries in Europe, consumers are facing high costs for food products, meaning that an ever-larger share of household budgets is being spent on basic necessities./ Monitor