In 2024, Albanian citizens continue to face a challenging paradox: they earn only about 41% of the average income in the European Union based on purchasing power parity (PPP), yet they are often paying more than Europeans for a wide range of essential and consumer goods.
According to Eurostat’s Comparative Consumer Price Index, prices in Albania for many categories of goods exceed the EU average, some by as much as 50%, even after adjusting for purchasing power.
Alcoholic Beverages: The Most Overpriced Category
Topping the list are alcoholic beverages, which cost 52.8% more than the EU average. To illustrate, a basket of alcoholic products that would cost €100 in the EU would cost €152.80 in Albania in real purchasing terms.
Electronics and Household Appliances: Steep Price Tags
The second most expensive category includes audio-visual, photographic, and information processing equipment—items such as televisions, radios, digital cameras, laptops, printers, and tablets. These are priced 49.5% higher than the EU average in 2024, up from 35.7% a year earlier.
Similarly, household appliances such as refrigerators, washing machines, stoves, air conditioners, blenders, and toasters now cost 45.8% more than the European average—an increase from 30.8% in 2023.
Food Costs: No Longer a Bargain
Perhaps most concerning is the rise in prices for essential food items. The cost of milk, cheese, and eggs has increased by 31.5% above the EU average, up from 19.5% last year. Notably, in 2013, this category was 10% cheaper than the EU average, highlighting a dramatic shift in affordability over the past decade.
General food prices are now 25% more expensive than in the EU, compared to 19% a year earlier. Even non-alcoholic beverages have risen to 19% above the EU benchmark.
For the first time ever, the prices of food and non-alcoholic drinks combined in Albania have surpassed the EU average, now sitting 1.1% higher.
Other Key Price Categories in 2024:
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Home furniture and maintenance: 11.5% above EU average
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Communication services: 2.7% more expensive
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Personal transport equipment: 5.9% more costly
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Carpets and home textiles: 2.2% higher
Still Cheaper: Tobacco and Dining Out
Not all categories are more expensive. Two remain relatively cheaper than the EU average:
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Tobacco products: Only 46.8% of the EU average
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Restaurants and hotels: About 52.3% of the EU average
Overall Price Level: Albania Leading the Region in Cost
Despite relatively low incomes, Albania now has the highest consumer price level in the Western Balkans, at 62.9% of the EU average. That’s a significant rise from 58.2% in 2023 and 54.6% in 2022—closing the price gap with the EU by 8.3 percentage points in just two years.
In comparison:
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Serbia: 61.4%
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Bosnia & Herzegovina: 59.7%
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Montenegro: 57.9%
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North Macedonia: 49.6%
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Croatia: 73.3%
EU Consumer Price Landscape in 2024
Across the EU, Denmark leads with the highest prices (143% of the EU average), followed by Ireland (138%) and Luxembourg (133%). The most affordable countries are Bulgaria (60%), Romania (64%), and Poland (72%).
Alcohol and tobacco are the product groups with the largest price variations. In Ireland, they cost 205% of the EU average, compared to 69% in Bulgaria. This difference is largely due to national taxation policies.
Restaurants and hotels also show significant disparities: 148% of the EU average in Denmark, compared to just 53% in Bulgaria. Clothing, food, personal transport, and consumer electronics follow similar trends of wide variation.
Conclusion: Rising Prices, Stagnant Wages
The 2024 Eurostat data reveals a troubling reality for Albanian consumers: prices are rising faster than incomes, especially for basic goods. While Albania narrows the price gap with the EU, its purchasing power remains far behind. As inflation continues to outpace wage growth, the cost of living crisis deepens, raising concerns about affordability and economic equity in the region.