According to data from the Institute of Statistics (INSTAT), inflation in February dropped to 1.9%, compared to 2.6% in the same period last year. However, this overall decline has not been reflected in food prices, which continued to rise, reaching 2.8%, up from 2.6% in January. Food and essential products remain the main drivers of inflationary pressure, directly impacting citizens’ purchasing power.

In addition to food, alcohol and tobacco prices have also increased significantly, rising to 4.5%, up from 3.9%. Similarly, the entertainment and culture sector saw a notable increase, reaching 6.5% from 5.7%.

On the other hand, transportation costs registered a -2.2% decline in inflation, mainly due to lower fuel prices, although a slight increase of 0.3 percentage points has been recorded since January.

Housing costs, water, and electricity prices have also declined, dropping to 0.4% from 0.9%, a significantly lower level compared to the same period last year, when they stood at 2.4%. These expenses account for a substantial portion of Albanian household budgets.

Despite low inflation, experts predict a moderate increase in the coming months due to low interest rates and a slight recovery of the euro against the lek, gradually steering inflation toward the Bank of Albania’s 3% target.