In December, while inflation was 2.2%, three groups directly related to tourist activity accounted for about 54% of the price increase.
According to INSTAT data, the group "Rent, water, fuel and energy" had an impact of 0.96 percentage points; "Hotels, cafes and restaurants" had an impact of 0.15 percentage points and "Entertainment and culture" had an impact of 0.08 percentage points.
While it was most evident in December, this trend has been present throughout the year. According to INSTAT, the average inflation in the economy was 2.2% in 2025, but its structure shows that a significant part of the price increase stems from tourism, through accommodation, services, food outside the home, transport and rents, and cafes and restaurants.
INSTAT data for 2025 show that inflationary pressures are concentrating and becoming more selective, linked more to seasonal demand and tourist flows, rather than to domestic consumption power.
At the forefront of growth last year were accommodation services, with an increase of 6.5%, as well as entertainment and culture (+5.6%), reflecting the expansion of tourist activity and the increased demand for recreational services.
In parallel, services and products for consumption outside the home have also become significantly more expensive, such as coffee, tea and cocoa (+5.4%), alcoholic beverages (over 3%), as well as foods widely used by the bars and restaurants sector, such as meat and dairy.
Transport services increased by 3.9%, despite the overall transport group showing a decline, due to lower fuel prices. This breakdown shows that tourist demand has increased the cost of services, even when other factors have acted in the opposite direction.
A key element in the structure of inflation in 2025 is rents, which increased by an average of 4.5%. Growth was strong in the second half of the year, peaking in December at 8%. This development is closely related to the orientation of a significant part of housing towards the short-term rental market for tourists, especially in urban and coastal areas.
The acceleration in growth at the end of 2025 indicates that the pressure on the housing market is expected to continue in the coming months, turning the issue of rents from a market problem into a social and economic challenge. In the absence of policies to increase the supply of affordable housing and curb speculation, the current pace of growth suggests that rents in Albania are entering a new phase of price increases, much more aggressive than in previous years.
According to data from real estate agencies in the residential rental segment, this year prices for 1+1 apartments in Tirana have reached up to 900 euros per month in the most sought-after areas of the city. Data from real estate agencies show that the rental market is recording continuous growth, with prices increasing on average by 6 to 57% in just one year.
Price increases have also been present in several other tourism-related sub-groups, such as hotel furniture and upholstery supplies, whose imports and prices have increased significantly in the last two years. Prices of textiles and carpets increased by 5–6.4%.
In 2025, more than 12 million foreign citizens visited the country, which increased demand for numerous services, but accommodation, cafes, restaurants, and entertainment were the main ones, which, as seen from inflation data, is translating into an increase in the cost of living for locals./Monitor
