Inflation rate up 3% y-o-y in September

TIRANA, Nov. 8 – Albania’s Consumer price index (CPI) continued remaining within the central bank’s 3ѱ percent target band last October, despite a 0.2 percent increase compared to September 2010. Institute of Statistics (INSTAT) data show the CPI increased by 3 percent year-on-year last September. One year ago the change was 2.5 percent, 0.5 percent below the central bank’s lower target.
Compared to last September, prices of food and non-alcoholic beverages rose by 0.4 percent in October. The biggest increase within this group was reported in the “vegetables including potatoes” subgroup whose prices grew by 2 percent. Fruit prices in this subgroup dropped by 2.6 percent, registering the biggest increase.
Prices of alcoholic beverages and tobacco slightly increased 0.1 percent.
Unlike September, clothing and footwear prices increased by 0.2 percent. Transport costs also registered a 0.1 percent increase with car prices up 0.5 percent.
The index for “rent, water, fuel and power” rose 0.1 percent with fuel prices and maintenance costs, up 0.2 and 0.7 percent, respectively.
The 3 percent rate continues keeping the inflation rate within the central bank’s 3 percent target, plus/minus 1 percent, registering one of the lowest rates during the first 10 months of this year.
Last February, the inflation rate registered a record 4.4 percent, exceeding the bank’s target by 0.4 percent mainly because of higher food and electricity prices.
According to the International Monetary Fund, the baseline inflation outlook 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.