. Photo: Antigonë Isufi/BIRN

Kosovo Ends 2022 With Record Inflation

The end of 2022 found consumers in Kosovo paying significantly more in prices according to the latest data of the Kosovo Agency of Statistics.

Kosovo ended 2022 with an inflation rate of 11.6 per cent according to the data of the Kosovo Agency of Statistics, KAS.

Flour, bread, beef and chicken, eggs and cooking oil are just some of the basic products whose average price increased markedly.

In December 2021, according to the average price list issued by KAS, a kilo of wheat flour cost 0.65 euros. 

In December 2022, it cost 0.83 euros, an increase of 15 cent compared to December 2021 and 33 cents more compared to December 2020.

Citizens bought one kilo of beef for 7.98 euros in December 2021. In the same month of 2022 the price had increased by 1.96 euros.

In December 2020, citizens could buy 30 eggs for 3.01 euros. In the same month of 2022, the price was 4.25 euros.

A litre of cooking oil in December 2020 cost 1.15 euros, in December 2021, the price was 1.69 euros, while in December 2022 it was 2.19 euros.

Safet Gerxhaliu, an economic expert, said 2022 has been one of the most difficult years for Kosovo, as the country has gone from one crisis to another.

“Kosovo has experienced one of its most difficult years and has gone from one crisis to another, with the situation in the north. Inflation in 2022 set a record. These data provided by the agency of statistics, but also by the World Bank, show a worrying high level of inflation – according to them as high as 20 per cent,” Gerxhaliu told Prishtina Insight.

According to him, the fact that the government of Kosovo has not accepted this crisis has been another big problem.

“The biggest problem has been that the institutions have not accepted this crisis, and while this is denied, its effects are much greater. In Kosovo, there has been no analysis of the effects of inflation,” he added.

Gerxhaliu said the government should design mechanisms to fight inflation, starting by freezing excise tax.

“What you bought in 2021 with 200 euros in 2022 now costs over 400 euros. The government should design mechanisms to minimize the consequences of this crisis, but there have been only ad hoc attempts, turning Kosovo into a welfare state. The government should take steps to freeze excise duty, VAT and apply packages for businesses,” Gerxhaliu declared.

Another price increase was in tea. A kilo in the last month of 2022 cost 9.36 euros, up from 7.97 euros in January 2020.

A marked increase is also evident in heating fuels. A cubic meter of wood in December last year cost an average of 61.43 euros – 16.82 euros more than in the same month of 2021.

KAS released this data with the publication of its “Harmonized Index of Consumer Prices for December 2022”.

The data show that product prices increased by an average of 0.9 per cent in December 2022 alone compared to November 2022. So in just one month prices increased by almost 1 per cent.

According to KAS, this is mainly explained by the price increase in transport services – 15.9 per cent, electricity – 7.6 per cent, clothing – 4.2 per cent, purchase of vehicles – 4.0 per cent, milk, cheese and eggs – 2.5 per cent, vegetables – 2.3 per cent, tobacco – 1.7 per cent, furniture and furnishings, carpets and other floor coverings – 1.3 per cent, and mineral water, soft drinks, fruit and vegetable juices – 1.2 per cent. Meanwhile, a drop in prices was observed in fuels and lubricants for personal transport equipment of -8.3 per cent.

Consumption in December 2022 was 12 per cent higher than in December 2021.

This increase, according to KAS, was influenced by transport services, fuels and oils.

“This is mainly explained by the increase in consumer prices in transport services (46.9%); solid fuels, firewood, pallets (38.8%); oils and fats (30.9%); milk, cheese and eggs (27.8%); bread and cereals (21.1%); meat (20.3%); goods and services for the usual maintenance of the economy (19.5%)” KAS said.

and 13/01/2023 - 16:39

13 January 2023 - 16:39

Prishtina Insight is a digital and print magazine published by BIRN Kosovo, an independent, non-governmental organisation. To find out more about the organization please visit the official website. Copyright © 2016 BIRN Kosovo.