HOUSEHOLD CONSUMPTION AND FOOD PRICE VULNERABILITY IN ALBANIA AND EUROPEAN UNION: A BEFORE, DURING AND AFTER COVID-19 ANALYSIS

Year 2025, Volume: 3 Issue: 1, 47 - 62, 30.08.2025

Azmi Stringa , Arlinda Topçiu

Abstract

This paper examines how inflation and food price changes from 2014 to 2023 affected real household consumption and food expenditure in Albania, compared to the European Union. Using a quantitative approach and data from INSTAT, Eurostat, IMF, and the Bank of Albania, it analyzes trends across three periods: pre-pandemic, pandemic, and post-pandemic. Despite Albania’s 40% real GDP per capita growth and significant currency appreciation, findings reveal negative real growth in food and non-alcoholic beverage consumption throughout most of the decade—unlike the EU, where such declines appeared post-pandemic and were last observed during the during the financial crisis of 2008–2009. Albania’s high food expenditure share and steeper price increases made households more vulnerable to inflation. The results highlight the need for inclusive growth, food security, and stronger market competition to protect household welfare in economies with high food dependency.

Keywords

Inflation , Prices , Economy growth , GDP per capita , Foreign Exchange Rate , Household Index of Consumer Prices , HICP , Food prices , Household Consumption , Volumes

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