Albania’s April inflation rises to 14-month high

Albania’s inflation reached 2.3% in April, the highest level in over a year, largely due to rising food prices.

Tirana, May 8 (TemA) – Albania’s annual inflation rate rose to 2.3% in April, the highest level in 14 months, driven mainly by higher food prices, the national statistics agency INSTAT reported Thursday.

The increase surpassed seasonal expectations, as local agricultural production typically lowers food prices in spring. However, poor agricultural output and reduced domestic supply contributed to the price rise.

The Bank of Albania left its key interest rate unchanged at 2.75% in its latest meeting, noting signs of a slight economic slowdown in the first quarter of 2025. The central bank targets an inflation rate of 3%.

According to INSTAT, the main contributors to annual inflation were food and non-alcoholic beverages (+1.29 percentage points), followed by household goods, housing costs, and alcohol and tobacco.

Despite the rise, Albania’s inflation remains below the central bank’s target and lower than rates reported in several other European economies.