The United Nations Development Programme (UNDP) launched the Public Pulse Analysis “Exploring the Dynamics of Household Poverty in the Face of Inflation” with a presentation of its main findings and a roundtable discussion with diverse stakeholders.

The Analysis, aimed at assessing the extent to which inflation has affected the economic welfare of people in Kosovo, was conducted through the collection of 1,500 household surveys as well as a desk research. Findings show that expenditures for basic needs, including groceries, transportation, utility bills, health, rent, and education bills, have increased over the last three consecutive years.

The following are some of the main findings:

•    While in 2021 38.8% of households spent EUR 200 or more on groceries, it increased to 47.8% in 2022, and up to 59.5% in 2023.

•    Based on income data and the poverty line of EUR 1.85 per person per day, the poverty rate in 2023 is projected to be 16%. 10% of households were considerably poorer between 2023 and 2021, showing a decline compared to the previous year.

•    In 2023, and compared to 2021, an additional 10% of surveyed families were living below the threshold of EUR 1.85 per day when adjusted for price increases.

•    Inflation has affected mental and social well-being, causing disruptions in routine activities and increased stress, leading to a lower quality of life; 46% of respondents stated that their stress and anxiety increase because of increased prices.

•    69.2% of the respondents reported that they had to adjust their spending habits or budget in response to higher prices in the past year.

Agon Dobruna, Deputy Minister of Finance, Zana Gjocaj, Director of Department for Economic and Financial Stability - Central Bank of Kosovo, and PhD. Artan Mustafa, Researcher of Comparative Welfare State participated in the panel discussion aimed at fostering a more comprehensive understanding of the issue and bridging the perspectives and actions that need to be taken. The discussion focused on understanding the economic behaviour of households in the face of inflation, the consequences of inflation on households, including their well-being, and institutional actions to address such inflation.

The Public Pulse project, which has entered its 21st year of work, is funded by the American people through the United States Agency for International Development (USAID).

You can find the Public Pulse Analysis in three languages at this link: https://www.undp.org/kosovo/publications/exploring-dynamics-household-poverty-face-inflation-evidence-survey

For more information, please contact:
Burbuqe Dobranja, UNDP Communications Associate 
Phone: (038) 249 066 ext. 410;   mobile: 049 720 800      e-mail: burbuqe.dobranja@undp.org

Danijela Mitić, Communications Associate UNDP 
Phone: (038) 249 066 ext. 412;    mobile: 049 720 824     e-mail: danijela.mitic@undp.org

PR in Albanian

PR in Serbian