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The price crisis is shrinking consumption. Citizens say they are buying less and focusing more and more on food alone due to rising living costs.
While traders complain about the decline in purchasing power even though they admit that prices are unaffordable for consumers.
“It simply came to our notice then. Vegetables, fruits. Basic products are growing. We got 3 we will get 2 now “said a buyer.
“They have all grown up. Starting with cheese, cottage cheese, sugar flour and basic things have all grown. We feel that there is nothing, but we have not done it. We have left the other things, we are only buying food “said a buyer.
“They are a bit high. The oil seems more mature to me. “We achieve them with little difficulty, because we also have the problem of medicines”, said another buyer.
“Prices have risen a lot, almost all of them, especially vegetables, and there are no buyers at all. Tomatoes, peppers very expensive. No people, do not buy at all. They ask and leave: ‘Too expensive’-they say. “They are unaffordable for people as well.”said the merchant.
Economics experts explain that the decline in consumption in this period of crisis is inevitable and the effects on the economy are expected to be long-term.
“With these prices, consumption definitely decreases because with the same amount of money we will buy less and this brings a cycle of effects. Reducing consumption means market demand is less. “The contraction of the quantity that companies will produce can lead to a reduction of jobs, which can lead to a contraction of household income which will then lead again to a decrease in purchasing power.” said the expert on economics, Teuta Nunaj.
In the face of these rising prices that are expected to keep inflation above target for a long time by hitting the most needy, experts propose comprehensive government support measures.
“As the effects are temporary, the action of the package is also temporary. It has to be stretched in time. It affects more the low-income and middle classes who will no longer invest in homes, car purchases or some other services and goods that are not vital but necessary. ”
Albanians spend about 41.6% of their total income on food and any increase in costs translates into additional costs for them, at a time when wages on the other hand remain in place.
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