Kosovo Inflation Hits Over Two-Year High in August

Kosovo’s annual inflation rate rose to 4.5% in August 2025, the highest since April 2023, accelerating from 4.3% in the previous month. Price pressures were primarily driven by faster growth in food and non-alcoholic beverages (9.3% vs. 9.2% in July), housing and utilities (4.8% vs. 4.5%), alcohol and tobacco (4.4% vs. 4.2%), and furnishings and household maintenance (2.5% vs. 3.2%), alongside a smaller decline in transport prices (-1.8% vs. -3.3%). In contrast, inflation slowed in recreation and culture (2.4% vs. 3.5%), clothing and footwear (2.3% vs. 2.5%), and miscellaneous goods and services (3.6% vs. 3.7%), while communication continued to decline steadily (-2.1%). On a monthly basis, consumer prices rose 0.5% in August, following a 0.2% increase in July.