TIRANA, May 11 – Albania’s inflation rate slightly accelerated to 2.3 percent in April 2015 on double-digit increases in fruit and vegetable prices affected by last February’s massive floods causing considerable damage to local crops in southern Albania.
Data published by the country’s state statistical institute, INSTAT, show Albania’s annual inflation rate rose to 2.3 percent last April, the same to last February when it hit a 20-month high, but yet remaining below the central bank’s 3 percent target estimated to have a positive impact on investments and consumption, the two key drivers of the Albanian economy.
Food and non-alcoholic beverage prices, the key item in the consumer basket, had the biggest 2.06 percentage point impact on the annual increase of consumer prices last April. Within this group, “vegetables including potato” prices were up by 15.9 percent year-on-year, while fruit prices grew by 18.5 percent, says INSTAT.
Agriculture ministry experts had warned lower domestic production of vegetables due to the floods last February would increase reliance on imported products which are 10 to 15 percent more expensive.
The flooding in southern Albania in early February caused considerable damage to agriculture, livestock, houses and businesses and local infrastructure, estimated at millions of euros. Educational services registered the highest annual growth of 10.1 percent in April 2015 fuelled a hike public universities fees last October. Alcoholic beverages and tobacco were up by 6.5 percent driven by 8.7 increase in cigarette prices due to higher excise duty. The biggest price declines were reported in the health and transport groups at 1.5 percent each.
The Albanian government expects the inflation rate to accelerate to 2.5 percent in 2015 after it hit a 15-year low of 1.6 percent in 2014, hinting sluggish demand and private investments.
Albania’s central bank estimates that by preserving the inflation rate at around the 3 percent rate, the monetary policy will continue having a positive contribution to the development of the Albanian economy.
