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

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Despite economic growth and rising incomes in recent years, Albania remains an economy where a very large portion of financial resources is still used for securing food.

According to Eurostat data, processed by Monitor, Albania continues to have the highest share of food expenditure in relation to the size of its economy, surpassing not only European Union countries but also all other economies in the region.

Statistics show that nominal spending on food in Albania reached 20.4% of Gross Domestic Product (GDP) in 2025, from 20.5% a year earlier. This means that a value equivalent to roughly one-fifth of the entire annual output of the Albanian economy is used for purchasing food.

The high share of food indicates that Albanian households continue to use a large part of their income for basic needs.

In higher-income economies, food accounts for a much smaller share of spending, as families have more money left over for housing, transport, education, healthcare, culture, and entertainment.

What the indicator measures

The data is part of the Eurostat database for purchasing power parity, price levels, and expenditure by consumption categories.

The indicator used in this case is “nominal expenditure as a percentage of GDP” and measures the total value of spending on food in a country, in relation to the size of its economy.

Albania above the entire region

Albania ranked first in the region in 2025, with food spending at 20.4% of GDP.

Very close behind was Montenegro, where food represented 19.9% of GDP, up from 19.3% in 2024. In Bosnia and Herzegovina, the share rose slightly from 19% to 19.1%.

In North Macedonia, food spending accounted for 17.9% of GDP in 2025, a decrease from 18.2% a year earlier.

The average for candidate and potential candidate countries, excluding Turkey and Kosovo, was 15.9% of GDP, about 4.5 percentage points lower than in Albania.

Serbia had a significantly lower level than the rest of the Western Balkans. Food spending constituted 12.8% of GDP in 2025, up from 12.7% in 2024.

For Kosovo, the published table contains no separate data.

Europe spends far less on food

The difference with the European Union is even greater. In the 27 EU countries, food spending represented an average of 6.2% of GDP in 2025.

In Albania, the share of 20.4% was more than three times higher than the European average. The difference reached 14.2 percentage points.

Even compared to the EU’s poorer countries, Albania had a much higher share. In Romania, food accounted for 12.9% of GDP, in Bulgaria 11%, while in Greece it was 11.2%.

In Croatia, the share was 10.2%, in Portugal 11.4%, while in Poland it was 9%.

In Italy, food spending represented 7.9% of GDP, while in Spain it was 6.6%.

In higher-income countries, the share of food in the economy was much lower.

In Germany, food spending made up 5% of GDP, in France 5.8%, in Austria 4.6%, and in Switzerland 4%. In Denmark and the Netherlands, the ratio was only 4.4%, while in Norway it was 3.3%.

The lowest levels were recorded in Luxembourg, at 2.8% of GDP, and in Ireland, at only 2.1%.

Food prices are more expensive than the EU average, according to purchasing power

One of the factors increasing household budgets for food is the high prices relative to income. Other Eurostat data indicated that in 2025, food prices for the first time became about 3% more expensive than the European Union average.

Prices have risen rapidly, from 85% of the EU average in 2022, to 99.6% in 2024, surpassing it to reach 102.9% in 2025.

Put more simply, a basket of food that costs an average of 100 euros in the European Union costs about 103 euros in Albania, measured by purchasing power, while the per capita income of Albanians is less than half the European average (48%, according to individual consumption per capita).

Albania is also the most expensive in the region. Serbia ranks second with an index of 96.6, although prices there have also gradually increased from 91.5 in 2022.

Montenegro and Bosnia-Herzegovina have almost the same price level, at 84.6 respectively, while North Macedonia remains the cheapest country in the region at 74.3% of the EU average. Data for Kosovo is missing.

5 billion euros, a fifth of the economy, for eating

In nominal terms, food spending in Albania reaches about 5 billion euros annually. Per capita, every Albanian, according to Eurostat, spent 2,349 euros in 2025, a figure comparable to the European Union average of 2,576 euros.

Albania is surpassed in the region only by Montenegro (2,613 euros), but Montenegrin wages are nearly 40% higher than in Albania. North Macedonians (1,666), people in Bosnia and Herzegovina (1,620), and Serbians (1,735) spend less in value terms on food. /Monitor

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