THE SOCIAL AND ECONOMIC IMPACT OF THE RUSSIA-UKRAINE WAR IN ALBANIA (IN FOCUS THE IMPACT OF THE CONSUMPTION OF SOME BASIC BASKET PRODUCTS)

The start of the Russia-Ukraine war on February 24, 2022, immediately affected the economy of all countries, such as European countries and worldwide. Our country, as a developing country, immediately felt the impact of this war. Still faced with the consequences caused by the "Covid 19" pandemic, now for our country but also the whole world must face the effects and consequences of the Russia-Ukraine war. Thus, the markets immediately reflected price increases for all domestic and imported products, reaching an inflation level of 8% in August 2022, according to data declared by the Bank of Albania and INSTAT. High and Unforeseen Inflation in our country, considering that our country is a developing country, significantly affected the behavior of consumers in the market. The market reflected an immediate decline in consumption. Mainly, this decrease was immediately reflected in the basic products of the basket because inflation caused a decrease in purchasing power since we do not have a wage indexation to deal with the effects caused by inflation. In this, a study on changes in the consumption of some products with income based on prices, taking into account all their households and changes in power. The study reflects the consumer's diet towards basic basket products such as food, fruits and vegetables, oil, etc. This paper will reflect the declines in consumption for basic basket products as a result of inflation caused mainly by the war, which directly affected the decrease in consumer welfare. The recommendation of some possible solutions to the situation through government intervention will be reflected during this study.