INSTAT reports the Consumer Price Index was up 2.3 percent year-on-year in June 2013 driven by a 5.4 percent increase in the food and non-alcoholic beverage prices and a 4.1 percent rise in alcoholic beverages and tobacco prices.
TIRANA, July 11 – Albania’s consumer price index continues remaining within the central bank’s 3 percent target despite food and non-alcoholic beverage prices registering a 5.4 percent year-on-year increase in June 2013.
Driven by higher domestic agricultural production, the inflation rate dropped to 2.3 percent year-on-year in June 2013, down 0.3 percent compared to the previous month. In June 2012, the Consumer Price Index was up 2.2 percent, according to INSTAT.
Food and non-alcoholic beverage prices dropped by 1.4 percent compared to last May. The biggest decrease was registered in the “vegetables including potatoes” subgroup whose prices dropped by 10.4 percent compared to the previous month. Aubergine, tomato, cucumber, pepper and salad prices dropped by 16.6 to 41.2 percent compared to last May. Meanwhile, fruit prices rose by 3.5 percent.
Diesel and petrol prices dropped by 0.7 percent and 0.4 percent
“The index of different goods and services” dropped by 0.4 percent, a decline which was mainly a result of decrease in car insurance rates, which since the liberalization of the insurance market have undergone frequent fluctuations.
At 2.3 percent, inflation rate registered the lowest rate since June 2012 after last May’s 2.1 percent remaining below the Bank of Albania 3ѱ percent target, and reflecting the moderate consumer demand as also unveiled by the sluggish value added tax performance. INSTAT reports the Consumer Price Index was up 2.3 percent year-on-year in June 2013 driven by a 5.4 percent increase in the food and non-alcoholic beverage prices and a 4.1 percent rise in alcoholic beverages and tobacco prices.
Clothes and footwear was the only category to register a considerable 4.5 percent drop in prices in May 2013. The ‘rent, water fuel and energy’ index also declined by 0.5 percent year-on-year.
Albania’s annual inflation rate dropped to 2 percent in 2012, down from 3.5 percent in 2011. Albania’s central bank itself estimates that by preserving the inflation rate around the 3 percent rate, the monetary policy will continue having positive contribution to the development of the Albanian economy.
Low inflation pressures have allowed the Bank of Albania to cut the key interest rate by 1.5 percentage points to a historic low of 3.75 percent since September 2011 in an effort to stimulate the economy but the moves have been poorly reflected in lower loan interest rates and an increase in investments.
