Inflation and the Erosion of Purchasing Power in Kosovo: The Real Value of EUR 100 (Base Year 2019) from 2010 to 2025
DOI:
https://doi.org/10.5281/zenodo.18525274Keywords:
inflation, purchasing power, real income, HICP, Kosovo, euroization, cost of livingAbstract
Inflation changes the real value of money, meaning that an unchanged nominal amount buys different quantities of goods and services over time. This study quantifies the erosion of purchasing power in Kosovo by translating EUR 100 in the base year 2019 into its real value across 2010–2024, and for October 2025. The analysis relies on the Harmonized Index of Consumer Prices (HICP) published by the Kosovo Agency of Statistics (KAS) for annual averages through 2024, and Eurostat HICP data (via FRED) for October 2025. Real values are computed using standard deflation, setting 2019 as the purchasing power benchmark. Results show that EUR 100 in 2019 corresponds to roughly EUR 105 in 2014 prices, but only about EUR 77 in October 2025 prices, implying that the 2019 consumption basket costing EUR 100 would require roughly EUR 129–130 by October 2025. The findings align with public economic commentary in Kosovo that emphasizes the growing gap between nominal incomes and real living standards. The paper concludes with policy-relevant implications related to euroization constraints, imported inflation exposure, and the need for targeted social and productivity policies that protect household welfare during persistent price shocks.
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