Rents push inflation higher as food and transport costs rank second and third

TIRANA, June 12 – The cost of living in Albania continues to rise. Data from INSTAT show that inflation reached 3 percent in May, the highest level recorded in the past two years. Price increases mainly come from higher rents, food, and transport costs. Experts also link the trend to the tourist season and international market pressures.
Professor Antoneta Polo, an economics lecturer, said rental prices had the strongest impact on inflation. She noted that tourist rentals contributed significantly to the overall increase. She also said food prices and transport costs followed as the second and third main drivers of inflation.
Inflation trends vary across the municipality. Gjirokastër, a key southern tourist destination, reflects this pattern. Demand for accommodation and services remains high during the tourist season. This demand also affects local prices.
Polo said rental prices in Gjirokastër have increased, especially for properties leased to tourists. She also pointed to higher food costs during the summer season. Transport expenses have increased as well, she added.
Experts expect the summer months to play a decisive role in inflation trends. Strong tourism demand and external market pressures could maintain upward price movement. If this continues, prices may rise further in the coming months.
For households, the trend means higher spending for the same goods and services. For the economy, it creates pressure to balance consumption growth with price stability.
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