Inflation in June 2025 reaches 2.4%, but living costs remain high for families

The Consumer Price Index (CPI) in June 2025 reached 119.2, reflecting an annual increase of 2.4% compared to June of the previous year. This is a slight rise from last year’s rate (2.1%) and a monthly decrease of -0.2% compared to May 2025, signaling a seasonal slowdown in inflationary pressures.

Where do citizens feel inflation the most?

Inflation in June 2025, although at relatively moderate levels (2.4%), has directly impacted families’ daily budgets through rising prices of essential goods and services. Below are the product groups where citizens feel the price pressure most:

Food and Non-Alcoholic Beverages
This group carries the largest weight in the consumer basket (34.3%) and registered an annual increase of 3.5%, contributing +1.19 percentage points (pp) to total inflation. Highlights within this group include:

• Oils and fats (+7.6%)
• Vegetables and potatoes (+5.3%)
• Milk, cheese, and eggs (+4.6%)
• Meat (+4.0%)
  This rise has an immediate effect on citizens’ tables, especially for low-income families.

Rent, Water, Energy, and Fuel
Annual increase of +1.8% with a contribution of +0.36 pp. Housing costs and basic utility bills continue to weigh heavily on middle-income groups and pensioners.

Furniture and Household Equipment
Annual increase of 3.0%, contributing +0.22 pp. This reflects increased costs for home maintenance and essential appliances.

Alcoholic Beverages and Tobacco
Increase of +3.5%, contributing +0.17 pp. This cost is higher for commonly consumed products.

Recreation and Culture
The highest increase among all groups at +6.8%. The rise is more sensitive for families consuming cultural services, tickets, books, or electronic entertainment devices.

Transport
The only group showing a negative annual change of -0.5%. This decrease provides temporary relief but is insufficient to offset increases in other groups.

🔺 Basic food products and energy are the main drivers of inflationary pressure.
🔻 Transport and some services have helped balance monthly costs but without a significant easing effect.

Citizens with fixed incomes or pensions are more exposed to these changes since a larger share of their income goes toward essential products.

What is slowing the price growth rate?

The “Transport” group is the only one showing an annual decrease of -0.5%, somewhat easing the inflationary burden at a time when global oil prices have been more stable. Likewise, modest increases in services such as “education” (+0.9%) and “health” (+0.6%) have kept overall inflation under control.

For citizens, these figures show a mixed reality. Prices are rising but not at the strong pace seen in previous years. However, basic food, energy, and rent remain the heaviest burden on family budgets, especially in urban areas.

The government and fiscal authorities must closely monitor price trends, especially inflation’s impact on vulnerable groups and basic consumption. Interventions to support purchasing power and prevent further increases in sectors like energy and food are key. If current trends continue, Albania may maintain stable inflation under 3% by year-end, but risks related to changes in international energy markets, climate, and exchange rates remain open.