TIRANA, March.12- Albanian consumers in February have spent more as INSTAT announces that inflation reached the level of 3.6%, increasing by 0.7% compared to last year. The inflation spike is due to the rise in food prices especially fruits and veggies.
Bread prices have also played a significant role being a main element in the consumer basket. INSTAT has identified other inflationary pressures such as the increase in fuel prices and the tickets on inter-city buses.
The only goods that have marked a decrease in prices are textiles and shoes given the sales of the season. February inflation level thus is above the target rate set by BoA of 3 percent.
Trade account
The relationship between imports and exports continues to be negative. Data from INSTAT reveal that for the month of January 2008, the exports reached 7,5 billion lek, increasing 11.9 percent compared to December of 2007. Imports on the other hand reached 29,3 billion lek, increasing by 20.6 percent. The trade deficit for this month is 21,9 billion lek, decreasing by 21.9 percent compared to last month but increasing compared to the same month in 2007.
2007
According to the same data 2007 recorded unprecedented trade deficit levels, passing from 222 billion lek in 2006 to 280 billion in 2007. Converted to euro the increase is more than 500 million euro in one year. INSTAT reports that 2.3 million euro have left Albania to buy goods and services in 2007, uncovered by exports. This huge amount has been covered at half its value by remittances according to BoA. The latter have totaled 1 billion euro last year.
Main trading partners
Trade with EU member states during January if this year accounted for 65.3 percent of the total amount with key partners still remaining Italy and Greece. Respectively with Italy exports were 83.4 percent while imports 44.2 percent and with Greece, exports were 9.6 percent and imports 27 percent. Some of the other trading partners that have recorded increasing amounts have been Germany and Austria for exports and Croatia and Switzerland for imports.
Structural composition
Compared to the composition of the last month, exports in the group of construction materials increased by 33 percent while export of textiles and leather products increased by 17.3 percent while fuel decreased by 19.6 percent. Import levels in construction materials and metals increased by 5.5 percent.
