Prices Slow Down in May, Inflation Drops to 2.2%
The increase of consumer goods prices slowed down in May, compared to April when inflation reached its highest level in a year.
INSTAT reported that inflation, which measures the annual change in the consumer price index in May 2025, was 2.2% in May, down from 2.3% a month earlier. Inflation continues to remain below the Bank of Albania’s target of 3%.
As always, food continues to be the main push for price increases. INSTAT reported that the annual price increase in May was mainly influenced by the “Food and non-alcoholic beverages” group with 1.11 percentage points, followed by the “Rent, water, fuel and energy” group with 0.30 pps.
Also, prices of the group "Furniture, home appliances, and home maintenance" by 0.24 pps, prices of the group "Alcoholic beverages and tobacco" affected by 0.18 pps, prices of the group "Entertainment and culture" by 0.14 pps, prices of the group "Hotels, cafes and restaurants" by 0.10 pps, prices of the group "Clothing and footwear" by 0.09 pps, prices of the group "Miscellaneous goods and services" by 0.06 pps, prices of the group "Communication" by 0.05 pps, prices of the group "Educational services" by 0.03 pps, prices of the group "Health" by 0.02 pps and prices of the group "Transport" by 0.07 pps.
Compared to May 2024, the largest price increase is observed in the "Entertainment and culture" group by 6.3%, followed by the groups "Alcoholic beverages and tobacco" by 3.7%, "Food and non-alcoholic beverages" and "Furniture, household equipment and home maintenance" by 3.2% each, "Clothing and footwear" by 2.5%, "Hotels, cafes and restaurants" by 1.8%, "Communication" by 1.6%, "Rent, water, fuel and energy" by 1.5%, "Various goods and services" by 1.1%, "Educational services" by 0.9% and "Health" by 0.5%. On the other hand, prices in the "Transport" group decreased by 1.2%.