Kosovo’s annual inflation rate rose to 7.3% in August 2026, up from 6.5% in July. The acceleration was driven primarily by higher transport costs, which jumped 21.1% after a 17.8% increase in the previous month, and by faster price growth in housing and utilities (11.8% vs. 11.1%).
Additional upward pressure came from stronger inflation in several categories, including alcoholic beverages, tobacco and narcotics (5.3% vs. 5.1%), restaurants and hotels (5.4% vs. 5.3%), clothing and footwear (3.0% vs. 2.8%), recreation, sports and culture (3.4% vs. 2.3%), furnishings (3.4% vs. 2.5%), and health (4.2% vs. 4.0%).
By contrast, food inflation continued to ease for the sixth consecutive month, slipping to 2.6% from 2.7%. On a monthly basis, consumer prices increased by 1.3% in August, the fastest rise in five months, following a 0.6% gain in July.
