Consumer prices up 2.4% in September, driven by housing and utilities

Albania’s Consumer Price Index (CPI) rose by 2.4% year-on-year in September 2025, up from 1.9% a year earlier, according to data published by INSTAT. On a monthly basis, prices increased by 0.7% compared to August.

Why is this important: The rise marks a continuation of moderate inflation within the central bank’s target range, signaling stable consumer demand but also persistent pressure from housing and energy costs. Inflation remains one of the key indicators of the cost of living in Albania.

Context: The strongest contribution came from the “Rent, water, fuel, and energy” category, which added 0.83 percentage points to annual inflation. Food and non-alcoholic beverages followed, contributing 0.63 points.

Main contributors to annual inflation:

• Rent, water, fuel, and energy: +0.83%
• Food and non-alcoholic beverages: +0.63%
• Furniture and household maintenance: +0.19%
• Alcoholic beverages and tobacco: +0.17%
• Hotels, cafes, and restaurants: +0.14%
• Recreation and culture: +0.11%

Sector trends:

Compared to September 2024, the sharpest price increases were recorded in:

• Recreation and culture: +4.7%
• Rent, utilities, and energy: +4.1%
• Alcohol and tobacco: +3.4%
• Furniture and household goods: +2.6%
• Hotels and restaurants: +2.5%
• Education services: +2.2%
• Food and non-alcoholic drinks: +1.8%

Within food products, oils and fats rose nearly 6%, followed by dairy, cheese, eggs, and meat products. Meanwhile, transport prices saw a slight decline.