Some basic products such as sugar, liquid gas went up by 6.3% and 5.8% respectively compared to last October
TIRANA, Nov. 8 – Albania’s Consumer Price Index (CPI) continued remaining within the central bank’s 3ѱ percent target band even in November 2010 when it registered its lowest year-on-year rate at 2.8 percent, according to INSTAT. The situation was mainly a result of a of a 4.2 percent decrease in fruit prices, with lemon, mandarin, orange and apple prices registering considerable drops of up to 20 percent, also because of domestic production. However, some basic products such as sugar and liquid gas went up by 6.3% and 5.8% respectively compared to last October.
The ‘vegetables including potatoes’ group registered a 2.1 percent increase compared to last October. The considerable increase in pepper, aubergine and cucumber prices of up to 39 percent was compensated by lower lettuce, spinach and cabbage prices which fell by up to 12.2 percent.
Albania’s ‘food and non-alcoholic beverages’ group slightly increased by 0.2 percent in November while ‘alcoholic drinks and tobacco’ prices dropped by 0.1 percent with cigarette prices down by 0.3 percent.
INSTAT says the “transport” index remained unchanged although fuel prices registered a 0.1 percent increase.
However, petrol and diesel prices have registered another increase during this month, climbing up to 155 lek (1.5 dollars)/litre, up from 143 lek/l at the beginning of the year and 148 lek/l last November.
Traders explain the situation with price increases in international markets and the high rate of excise tax applied to diesel.
Albania’s price level index (PLI) for food and non-alcoholic beverages is at 72 percent of the EU 27, considerably more expensive compared to neighbouring Macedonia and even some EU members such as Poland, Romania, Bulgaria, according to a Eurostat survey in 2009.
According to the International Monetary Fund, the baseline inflation outlook for Albania remains favourable. Administrative price increases may drive headline inflation temporarily above the 3ѱ percent target band in the near term. However, underlying inflation is expected to remain under control, and annual inflation is projected at 3.5 percent in 2010 and 3 percent in the medium term, benefiting from the well entrenched credibility of the monetary policy framework.
