Inflation rate up 4.2% in May

TIRANA, June 9 – The inflation rate in May 2011 was up 4.2 percent year-on-year, remaining above the Bank of Albania’s 3ѱ target for the fourth consecutive month, according to INSTAT. One year ago the Consumer Price Index was up 3.3 percent.
Domestic agricultural production has continued positively contributing to lower vegetable prices which dropped by 18 percent compared to the previous month. Diesel prices were down 1.2 percent while petrol prices rose by 0.2 percent. Tobacco and medicine prices also rose by 0.1 and 0.3 percent, respectively.
Data from the country’s Institute of Statistics show the Consumer Price Index (CPI) rose 4.5 percent year-on-year in February 2011, exceeding the central bank’s target band by 0.5 percent. In March 2011, the annual inflation rate was at 4.3 percent compared to 4.1 percent in April 2011.
Last March, Albania’s central bank decided to raise the repo rate by 0.25 percentage points to 5.25 percent after keeping it unchanged at 5 percent–one of the lowest historic levels– for the past 8 months. Governor Ardian Fullani said the move was aimed at keeping inflation rates in check following a sharp rise in consumer prices.