Te annual price increase in August was mainly influenced by food and non-alcoholic beverages
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Inflation Rises 3.2%, Driven by Transport, Housing Costs

Economy Thursday, September 10, 2026

The inflation rate reached 3.2% in August 2026, up from 2.3% in the same month last year, while compared to July, consumer prices increased by 0.1%.

Compared to August 2025, the largest price increase is observed in the “Transport” group by 12.0%, followed by “Entertainment, sports and culture” by 5.4%, “Insurance and financial services” by 4.6%, “Rent, water, electricity, gas and other fuels” by 3.7%, “Food and non-alcoholic beverages”, “Furniture, household appliances and home maintenance” and “Personal care and various goods and services” by 2.8% each, “Alcoholic beverages and tobacco” by 2.4%, etc. On the other hand, prices in the “Clothing and footwear” group decreased by 3.2%, followed by the “Information and communication” group by 1.0%.

According to INSTAT, the annual price increase in August was mainly influenced by the group “Food and non-alcoholic beverages” with +0.95 percentage points, followed by the group “Transport” with +0.79 percentage points.

Also, the prices of the group “Rent, water, electricity, gas and other fuels” influenced by +0.76 percentage points, the prices of the group “Furniture, household equipment and home maintenance” with 0.19 percentage points, the prices of the group “Restaurants and accommodation services” with +0.13 percentage points, the prices of the groups “Alcoholic beverages and tobacco” and “Personal care and various goods and services” with +0.12 percentage points each.

Prices in the “Entertainment, sports and culture” group increased by +0.11 percentage points, prices in the “Educational services” and “Insurance and financial services” groups by +0.07 percentage points each, and prices in the “Health” group by +0.06 percentage points. On the other hand, prices in the “Clothing and footwear” group decreased by -0.12 percentage points, and prices in the “Information and communication” group decreased by -0.04 percentage points.

At its last meeting, in early August, the Bank of Albania decided to keep the key interest rate unchanged at 2.5%, despite clear signs of rising inflation.