Inflation rate drops to 3.6% in July

TIRANA, August 10 – Inflation rate in July 2011 dropped to 3.6 percent remaining within the central bank’s target band of 3ѱ percent for the second month in a row. Latest data published by the Institute of Statistics show the drop was attributed to domestic agricultural production which lowered “vegetable and potato” prices by 9.5 percent and fruit prices by 6.1 percent compared to the previous month.
Oil prices also registered a slight decrease with diesel prices down 0.9 percent and petrol prices down 0.4 percent.
Inflation remained was above the 4 percent from February to May 2011 exceeding the Bank of Albania’s target by up to 0.5 percent. The highest level was registered last February when the Consumer Price Index rose 4.5 percent year-on-year.
The Bank of Albania says the inflation rate will return to normal rates by the end of this year.
Central bank governor Ardian Fullani said in a recent press conference that the inflation rate is expected to get back to the central bank’s 3ѱ target band by year-end explaining that “the effect of the shocks of foreign prices will wane while the effect of administered prices will cease in the third quarter.”