The purchasing power of €100 in Kosovo has fallen to less than €90 since January 2025, as persistent price increases and high inflation continue to squeeze household budgets.
 |
| Persistent price increases and high inflation in Kosovo have driven the purchasing power of €100 down to less than €90 since January 2025, heavily impacting household budgets. |
According to Hasaj, inflation has remained above 5% since October last year, while monthly inflation during 2026 has averaged around 6.5% higher than in the corresponding months of the previous year.
“Since January 2025 until today, the purchasing power of €100 has fallen to less than €90,” Hasaj said.
The latest figures from the Kosovo Agency of Statistics (KAS) show that annual consumer-price inflation reached 7.3% in August 2026, up from 6.5% in July and 6% in June. Monthly inflation stood at 1.3%.
Transport has emerged as the biggest driver of the latest price increases. Prices in the transport category were 21.1% higher year-on-year in August, while transport prices alone increased 4.6% between July and August.
Housing, water, electricity, gas and other fuels recorded an annual increase of 11.8%, while restaurants and accommodation services rose 5.4%.
Alcoholic beverages, tobacco and narcotics increased by 5.1%, healthcare prices rose 4.2%, and personal care, social protection and miscellaneous goods and services increased by 3.8%.
Hasaj said the structure of inflation has shifted during 2026. Food prices were the main source of pressure earlier in the year, while transport and housing-related costs have become increasingly important in recent months.
He also said Kosovo currently has one of the highest inflation rates in the region and called for measures to increase domestic production, expand public transportation, accelerate energy investments and improve energy efficiency.
Among his proposals are a state program to support domestic production, greater investment in public transport and incentives for electric vehicles, as well as the unblocking of energy projects with more than 700 MW of capacity.
Hasaj also criticized the previous government led by Prime Minister Albin Kurti, arguing that its first mandate did not produce a clear state program aimed at increasing domestic production.
The latest inflation figures underline the growing pressure on Kosovar households: even as wages and economic activity continue to change, the same €100 now buys significantly less than it did less than two years ago.