FX.co ★ Kosovo Inflation Hits Over Two-Year High in August

Kosovo experienced a rise in its annual inflation rate, reaching 4.5% in August 2025, marking the highest figure since April 2023. This was an increase from the 4.3% recorded in the previous month. The upward pressure on prices was largely due to more rapid growth in the costs of food and non-alcoholic beverages, which increased by 9.3% compared to 9.2% in July. Housing and utilities costs also went up by 4.8% from 4.5%, while costs for alcohol and tobacco rose to 4.4% from 4.2%. Additionally, expenses related to furnishings and household maintenance, while still rising, showed a slight decline in pace, registering at 2.5% compared to 3.2% previously. Transport costs also showed a reduced decline, dropping by 1.8% as opposed to the earlier 3.3% decrease. Conversely, inflation saw a slowdown in the sectors of recreation and culture, where it decreased to 2.4% from 3.5%, clothing and footwear which saw a reduction to 2.3% from 2.5%, and miscellaneous goods and services which edged down to 3.6% from 3.7%. Meanwhile, the communication sector continued its steady decline, showing a reduction of 2.1%. On a month-to-month comparison, consumer prices increased by 0.5% in August, following a rise of 0.2% in July.