Inflation, 3.2% in August/ The rate softens compared to July, but prices continue to burden families
Inflation in Albania slowed slightly in August, following the acceleration recorded a month earlier, but remains above 3%. According to INSTAT data, the annual inflation rate was 3.2% in August 2026, up from 3.4% in July and 2.3% in the same month a year earlier. Compared to July, consumer prices increased by only 0.1%.
Although the overall pace of price increases has moderated, the pressure on household budgets remains concentrated in a few key spending categories. Food continues to make the largest contribution to inflation, while transportation is gaining more and more weight.
The group "Food and non-alcoholic beverages" contributed 0.95 percentage points to the annual inflation in August. It was followed by transportation with 0.79 percentage points, while "Rent, water, electricity, gas and other fuels" contributed 0.76 percentage points.
The strongest development, however, continues to be transportation. Compared to August last year, prices in this group increased by 12%, registering the highest growth rate among all consumer categories.
Following transportation is the group "Entertainment, sports and culture", with an annual increase of 5.4%, while "Insurance and financial services" became more expensive by 4.6%. The costs of rent, water, electricity, gas and other fuels were 3.7% higher than in August last year.
Meanwhile, prices of food and non-alcoholic beverages increased by 2.8% in annual terms. At the same rate, 2.8%, prices of furniture and household appliances, as well as personal care and various goods and services, also increased.
On a monthly basis, transportation was again the category with the strongest growth. Prices rose by 3.9% in August alone, compared to July. Restaurants and accommodation services rose by 0.2%, while the costs of rent, water, electricity and gas increased by 0.1%.
In annual terms, only two items recorded price declines. Clothing and footwear were 3.2% cheaper than in August 2025, while information and communication prices fell by 1%.
The August data thus show a moderation in headline inflation, from 3.4% in July to 3.2%, but not a easing of price pressures. Food continues to have the greatest impact on inflation due to its weight in the consumer basket, while transportation is showing the fastest price increase.
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