Albania’s consumer price index increased by 7.1% year on year in February, while the monthly increase in the index was 1.1% (chart), statistics office Instat said on March 8.
Annual inflation has accelerated sharply since the 3.9% recorded a year earlier, however, it has slowed after peaking towards the end of 2022. Inflation is projected to return to the target within the first half of 2024, according to the Bank of Albania.
The biggest contributor to the annual increase in the CPI was food and non-alcoholic beverages, where prices surged by 13.5%, lifting the overall value of the index by 4.80 percentage points (pp).
Within the food category, the sharpest price increase was for dairy products, at 28.0% y/y. This was followed by oil and fats (17.4%), fish (16.3%) and bread and cereals (15.2%).
Robust price increases were also recorded for furniture household goods and maintenance (6.9%), hotels, coffee-houses and restaurants (5.5%), alcoholic beverages and tobacco (5.1%) and clothing and footwear (4.4%).
The strongest monthly increase was also for food and non-alcoholic beverages, at 3.3%. Smaller rises were recorded for categories including furniture household goods and maintenance (0.7%), alcoholic beverages and tobacco, recreation and culture and miscellaneous goods and services (0.3% each). Transport prices dropped by 2.8% month on month.