Food prices keep inflation pressure high despite overall decline

Albania’s official inflation rate may be declining, but food prices continue to rise above average levels, keeping pressure on household budgets. According to the Institute of Statistics (INSTAT), food inflation in March was 2.5% higher than the same period last year.

What’s driving the trend. Key contributors to the sustained price increases include:

Milk, cheese, and eggs: +4.6%

Vegetables: +4.0%

Meat: +3.3%

Sweets: +1.2%

Fish: +0.1%

Experts say the current pricing landscape in Tirana’s markets reveals clear winners and losers, shaped largely by trade dynamics influenced by tariffs set in Washington. These international factors are adding pressure on local food supply chains, especially for imported goods.

Tourism fuels demand: Adding to the mix is a sharp rise in consumer demand driven by Albania’s booming tourism industry. The increased number of visitors is accelerating local consumption, further stoking inflation in key food sectors.

What’s next: The Bank of Albania expects inflation to remain at moderate levels in the coming months. However, it cautions that upward price pressures are still present. The central bank advises citizens to manage their living costs carefully as food remains a significant driver of inflation in the country.