Fresh vegetables market in Tirana

Annual Inflation Under HICP at 2.3% in 2025

Albania's inflation averaged 2.3% in 2025, measured by the EU-harmonized index of consumer prices (HICP), falling from an average of 2.3% in the previous year, the statistical office, INSTAT, said on Monday.

In December alone, the index increased by an annual 2.2%, after rising by 2.1% in November, INSTAT said in a statement.

The December HICP change reflects increases in recreation and culture prices (+7.6%); different goods and services (+2.6%); and alcoholic beverages and tobacco (+2.5%).

On a monthly comparison basis, Albania's HICP ticked up 0.6% in December, after edging down 0.4% in November.

The HICP covers all expenditures made within the country's territory by Albanian households, as well as the expenditures of resident and non-resident visitors.

According to the HICP, in December 2025, prices increased by +2.2%. The largest increase of 7.6% is observed in the “Entertainment and culture” group, followed by the “Miscellaneous goods and services” groups with 2.6%, “Alcoholic beverages and tobacco” with 2.5%, “Furniture, household equipment and maintenance” with 2.3%, “Educational services” and “Hotels, cafes and restaurants” with 2.2% each, “Food and non-alcoholic beverages” with 2.1%, “Rent, water, fuel and energy” with 1.4%, “Health” with 1.1%, “Clothing and footwear” with 0.9% and “Communication” with 0.8%. On the other hand, the prices of the “Transport” group decreased by 0.8%.

The average inflation rate in the EU was 2.3% in December 2025. Spain, Greece, Ireland, Slovenia, the Netherlands, Poland, Malta, and Portugal are all very close to this level.

Romania leads the way, with an annual growth rate significantly higher than all other countries, around 8.5%. Romania is followed by a group of Central and Eastern European countries, such as Slovakia, Estonia, Iceland, Austria, Croatia, and Bulgaria, where inflation is mainly between 3% and 4%. These levels are significantly above the EU average, reflecting higher sensitivity to energy prices, food, and domestic cost pressures. Countries such as Latvia, Hungary, Luxembourg, and Lithuania also remain above 3%, although with a more moderate trend.

Belgium, Cyprus, Sweden, Germany, Denmark, the Czech Republic, and Finland all have inflation rates below the EU average, with France and Switzerland falling even lower, close to or below 1%. Cyprus comes at the bottom of the list, with inflation close to zero, indicating a very calm price environment, but which may also raise questions about the dynamics of domestic demand.