Driven by strong foreign inflows from tourism, remittances, and investments, the euro’s multi-year depreciation against the lek has prompted ongoing intervention by the Bank of Albania. Between January 2024 and March 2026, the central bank purchased roughly €2.2 billion to cushion the lek’s upward pressure, culminating in a first-quarter record of nearly €140 million in 2026 alone.

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INSTAT published the report on the “Harmonized Index of Consumer Prices”, which compares price changes with European Union countries.

According to INSTAT, the annual change based on the Harmonised Indices of Consumer Prices (HICP) measure in October of the current year is 8% from almost 12% which is the average of the European Union.

Albania ranks after Switzerland, Iceland, France, Spain and Malta, among the countries that have experienced the lowest price increases in Europe.

The authorities in the country have stated that the low level of inflation has been influenced by keeping the price of energy unchanged for households and small businesses. The exchange rate also had an impact, where the Albanian currency Lek appreciated and was favored by the entire tourist season.

According to INSTAT, the largest increase in prices of 13.7% is observed in the group “food and non-alcoholic beverages”, followed by the groups “transportation” with 12.9%, “furniture, home appliances and maintenance” with 6.5%, “alcoholic beverages and tobacco” with 5.1%, “rent, water, fuel and energy” with 4.9%, “clothing and shoes” with 3.9%, “various goods and services” with 3.8%, “hotels, cafes and restaurants” with 3.1% , “health” and “educational service” with 2.4% each, “entertainment and culture” with 2.0% and “communication” with 0.6%. /j.p/p.s./

Referring to the data, Albania ranks among the 5 countries with the lowest inflation. In June, the average inflation in Europe was 9.6%.

According to measurements according to the EUROSTAT methodology, the largest price increase of 15.8% is observed in the “transport” group, followed by the “food and non-alcoholic beverages” groups with 11.1%, “rent, water, fuel and energy” with 4.5%, “furniture, home appliances and maintenance” with 3.9%, etc.

Eurozone inflation is measured on the basis of the HICP indicator. The term “harmonized” underlines the fact that all EU countries apply the same methodology in measuring the relevant indicator./p.s./

According to the press release, in the region of Lezha the fires are active, but burning with low intensity.

“The fire in the direction of Xhuxh village in Mirditë Municipality is under control. The fire moving to the village Hebe continues to be active, but is burning at low intensity and currently it poses no risk to the houses. The forces of local authorities are monitoring the fires on the ground,” the statement said.

Likewise, the Ministry of Defence informed that in Shkodra Region fires are active in Puka, while in Fushë-Arrëz the blaze is burning at low intensity.

While in Kukës Region, the Ministry of Defence informed that the fire is active and is burning at medium intensity.

In Elbasan Region, the fire was extinguished while there are active fires in Dibër Region and Vlora Region.

“The fire in the village of Mamel, administrative unit Gracen, over the tunnel of Qafë Krraba in Municipality of Elbasan has been extinguished. In Dibër Municipality, administrative unit Selishtë, Qafë Murrë, Kaçni – the fire has been isolated and some logs and timber are still burning. The employees of the administrative unit of Selishte are monitoring the fires in Kaçni and Qafë Murrë. In Himara Municipality – the fire in the place called “Vishnja Stream”, continues to be active. The fire had no further development, but only logs and humus burning. The terrain is difficult and does not allow any intervention”, it is said in the report of the Ministry of Defence. /m.m/p.s./

According to the BoA, the full recovery of the economy and the steady growth of inflation towards the 3% target at the end of 2022, should continue to be supported by a stimulating monetary policy profile, where the key interest rate for the lek will continue to be at the level of 0.5%.

The Central Bank emphasized that, “In order to move from easing monetary policy, i.e. with low interest rates, to a tight monetary policy, which means an increase in the interest rate, we must have a better economic situation, an expectation which is due by the end of 2022 ”.

“In the current conditions, the Bank of Albania deems that the easing monetary policy will continue for a long period. At least until the second half of 2022, monetary policy will continue with an interest rate of 0.5%.

“We expect the economy to improve, we expect recovery and monetary policy will continue and adapt to economic developments,” the BoA said. /j.p/p.s./