The annual inflation rate in Albania stood at 1.8 percent in December 2018, unchanged from the previous month, at the lowest level since January. Prices slowed for housing & utilities (2.2% vs 3.1% in November); transport (1.4% vs 2.5%); recreation & culture (2.7% vs 3.0%) and education (0.7% vs 0.8%). At the same time, cost remained flat for furniture & household equipment while decreased for clothing & footwear (-1.6% vs -0.4%) and health (-0.5% vs -1.0%). Conversely, inflation picked up for food & non-alcoholic beverages (2.8% vs 2.0%), mostly due to vegetables including potatoes (22.9%); alcoholic beverages & tobacco (2.5% vs 1.9%) and restaurants, coffee-houses & hotels (1.2% vs 1.0%). On a monthly basis, consumer prices rose 1.1 percent, after decreasing 0.2 percent in the previous month. Inflation Rate in Albania averaged 2.97 percent from 1995 until 2018, reaching an all time high of 42.08 percent in December of 1997 and a record low of -2.11 percent in March of 2000.
Inflation Rate in Albania is expected to be 2.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Albania to stand at 2.80 in 12 months time. In the long-term, the Albania Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.