Economic growth does not affect inflation

Tirana Times
By Tirana Times June 12, 2019 14:18

Economic growth does not affect inflation

TIRANA, June 12- As unemployment has continued to decline in the first quarter of 2019, marking the 12.1 percent, the highest income for Albanian households is not helping consumption. According to data from the Albanian Institute of Statistics (INSTAT), the inflation in May was 1.5 percent, being about half the target of 3 percent of the Bank of Albania for this indicator. Monthly change in the consumer price index in May 2019, compared to April, is -1 percent.

Annual price increase in May was mainly influenced by the group “foods and non-alcoholic beverages” with an increase of 1.17 percentage points, followed by “rent, water, fuels and energy” by 0.24 percentage points growth. The prices of “alcoholic beverages and tobacco” group contributed with 0.05 percentage points. The prices of “hotels, cafes and restaurants” and “furniture, home appliances and home maintenance” groups contributed with 0,04 percentage points each. The prices of “clothing and footwear” and “education” groups contributed with 0.02 percentage points each. The prices of “culture and entertainment” and “transport” groups contributed with a decrease of 0.02 percentage points each. The prices of the “health” group contributed with 0.01 percentage points less.

Inflation over the first five months of the year has not risen by more than 1.5 percent. The Bank of Albania argued a few days ago that in the macroeconomic view, the inflation slowdown in Albania reflected the fullest association of exchange rate overvaluation, the inflation slowdown in partner countries, and the effect of supply shocks on agricultural prices. On the other hand, the economic growth has led to the strengthening of domestic inflationary pressures, while pressures from the foreign environment are declining. According to INSTAT data, economic activity expanded by 3.1 percent in the last quarter of 2018, marking a slowdown compared to the previous ones. 

Tirana Times
By Tirana Times June 12, 2019 14:18