According to the latest report from INSTAT, Albania’s Consumer Price Index (CPI) rose by 2.3% in October 2025 compared to the same month last year, marking a slight increase in inflation after several months of stability.

Compared to September, prices increased by 0.1%, indicating a steady trend in the cost of living.

The category that contributed most to this increase was “Rent, water, fuels, and energy,” which recorded a 4.3% annual rise and had the highest impact on total inflation.

It was followed by “Food and non-alcoholic beverages,” which continue to weigh heavily on household budgets, as well as “Furniture and household equipment,” “Alcoholic beverages and tobacco,” and “Hotels, cafes, and restaurants,” with increases ranging from 2.4% to 3.1%.

Data show that food and energy prices remain the main drivers of inflation, while sectors such as transport and healthcare have remained almost unchanged.

Compared to last year, Albania’s inflation rate remains below the Bank of Albania’s 3% target, but recent months show a slow upward trend, largely linked to rising energy and basic service costs.

INSTAT’s October 2025 report indicates that while prices are stabilizing, housing, energy bills, and food costs continue to put pressure on household spending.