Albania becomes more expensive, food prices surpass the EU average for the first time

Albania becomes more expensive: food prices exceed the EU average for the first time

Albanian consumers have individual consumption per capita at purchasing power parity equal to 48% of the European Union average, and per capita income at 43% of the EU average.

In terms of consumption based on purchasing power, Albania ranks second to last in Europe, ahead only of Bosnia, while for income per capita it is at similar levels to North Macedonia and again ahead of Bosnia (data for Kosovo is missing).

However, when it comes to food prices, Albanians are increasingly paying more compared to the EU average, adjusted for purchasing power.

The latest Eurostat data, expected to be published today and processed by Monitor, shows that food prices are for the first time about 3% higher than the European Union average. Prices have risen rapidly, from 85% of the EU average in 2022, to 99.6% in 2024, and reaching 102.9% in 2025.

In simpler terms, a basket of food that costs on average 100 euros in the European Union costs around 103 euros in Albania, adjusted for purchasing power, while Albanian per capita income is less than half of the European average.

The Eurostat indicator does not measure prices in nominal terms, but rather the Price Level Index based on Purchasing Power Parities (PPP). This indicator compares how much the same basket of goods and services costs across different countries, eliminating the effect of exchange rates and differences in income levels.

A level above 100 indicates that prices are higher than the EU average, while a level below 100 indicates that they are lower.

Albania is the only country in the region where food prices have exceeded the EU average.

In contrast, other countries in the region remain significantly below the European average. Serbia ranks second with an index of 96.6, although even there prices have gradually increased from 91.5 in 2022.

Montenegro and Bosnia and 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.

A year ago, Albania matched the EU in the price index for food and non-alcoholic beverages, while this year it has exceeded European levels only in the food category (which was 99.6% in 2024). Including non-alcoholic beverages, the 2025 index stands at 103.8%, up from 101 in 2024.

The gap becomes even more evident when compared with income levels. While Albania has per capita income at 43% of the EU average and individual consumption at 48%, food prices are above the European average.

This means that Albanian households must spend a much larger share of their budget on food compared to citizens in wealthier European countries.

While the Albanian government aims to bring the country into the EU as quickly as possible, it seems the country is converging with Europe in terms of prices much faster than in terms of income. This phenomenon reduces real purchasing power and is one of the reasons why citizens’ perception of wellbeing remains significantly more negative than economic growth indicators suggest.

Although Albania is still the most agricultural country in Europe, where agriculture accounts for around 15% of the economy compared to the European average of 2%, we are increasingly forced to consume expensive products coming from imports or domestic goods with high prices due to lack of competitiveness. Just a few months ago, the price of tomatoes in the country surged to 400–600 ALL per kg.

Prices so high that even foreigners complain

Albania is not expensive only when measured in purchasing power terms, but also in direct prices, especially for supermarket products. Earlier, researcher Ilir Ciko presented preliminary findings from the study “Market Competition Index (MCI) for the Western Balkans: 2026.”

“For the average Albanian consumer, the results show that products bought in European supermarkets in Albania, stripped of the different VAT effect, cost on average 83% more than exactly the same products sold by the same companies in the European market, while their purchasing power is only 41% of the EU average,” the study stated.

Complaints about high prices do not come only from local consumers. In travel forums such as Reddit, TripAdvisor, and tourist groups visiting Albania, one of the most frequent comments is that supermarkets in Albania are more expensive than expected, with some basic products being compared to prices in Western Europe.

Tourists often point out the contrast between the country’s low income levels and the relatively high prices of food in supermarkets.

On TripAdvisor, in a discussion titled “Where can I buy affordable groceries?”, a visitor writes that supermarkets in Albania are “highly overpriced” and that they had never seen “such absurd prices,” especially compared with North Macedonia.

In another TripAdvisor discussion about Tirana, users say that prices in supermarket chains are “very high” and “higher than abroad.” On Reddit, in r/Albania, tourists and temporary residents also complain that basic shopping in supermarkets or small shops in Durrës cost more than expected.

In a recent Reddit discussion, a tourist visiting Tirana complained that in large supermarkets a liter of milk cost around 300 lek, chicken breast 1,700 lek/kg, and a 500g pack of muesli over 1,000 lek, prices they considered “surprisingly high” compared to restaurant and café prices.

Meanwhile, a tourist in Durrës reported: “I bought 2 tomatoes, 1 lemon, and 1 apple for 3 euros,” saying that actual prices were much higher than what they had seen on international cost-of-living comparison websites.

“KORÇA BOOM”