TIRANA, May 8 /ATA/ Prices of goods and services in the country continued to rise in May, pushing inflation to 3%, up from 2.2% a year earlier.

According to data published by the Institute of Statistics (INSTAT), the increase in prices over the past two months is mainly linked to higher fuel costs.

The increase has been driven by developments in international energy markets, associated with tensions in the Middle East, which have resulted in higher energy costs and a subsequent spillover effect on a range of goods and services across the economy.

Another contributing factor to the rise in prices is the growth in tourist arrivals, which has increased demand and, as a result, led to higher prices for accommodation and hospitality services in certain regions of the country.

Compared with a year ago, prices have risen most sharply in the sectors of transport, energy, rent, and financial services. Transport recorded the highest increase at 7.8%, while insurance and financial services rose by 4.9%. In addition, rent, energy, water, and fuels increased by 4.2%.

Price increases have also been recorded in restaurants, hotels, and other services, as well as in personal care products and alcoholic beverages and tobacco.

Meanwhile, food and non-alcoholic beverages—which account for the largest share of household spending in Albania—are 2.2% more expensive than a year ago.

Compared with April, the overall price level registered a slight decline of 0.04%, primarily due to lower prices for clothing and footwear, as well as modest decreases in food and transport costs.

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