Inflation reaches highest level in two years

Inflation in Albania rose to 3% in May, its highest level in two and a half years.

INSTAT data show the rate increased from 2.8% in April and was 0.8 percentage points higher than a year earlier.

Fuel prices were one of the main drivers, with inflation for fuels rising to 4.2% from 1.5% in May last year.

Food and drink prices also rose faster, with inflation in that category increasing to 2.2% from 1.3% in April.

One economist said fuel prices and high retail margins were helping keep prices elevated.

If inflation rises above the Bank of Albania’s 3% target, the central bank could come under pressure to raise interest rates.