November Consumer Prices rise 0.4% on the month, 2.8 on the year

TIRANA, Dec 9؁lbania’s November consumer price index (CPI) rose by 0.4% month-on-month, after increasing at the same rate in October, the National Statistics Office, INSTAT, said on Wednesday.
On an annual basis, consumer price inflation was 2.8% in November, compared to 2.3% in October, INSTAT said in a monthly report.
Albania’s CPI reached 104.1 points in November compared to its base of 100 points in December 2007. In November 2008 consumer prices fell by 0.1% on the month but were 2.6% higher on the year.
Albania targets an average annual inflation rate of 3.0% in 2009. In 2008 Albania’s average inflation accelerated to 3.4% from 2.9% in 2007.
The joy ride foreign currencies took with the lek values earlier this year is increasing prices in Albania and joins other factors causing higher inflation, the Bank of Albania said in a recent report.
Albania’s national lek currency has lost considerable ground against the euro in the domestic foreign exchange market over the last three months. Lek was devalued by more than 11% during 2009.
The exchange rate on Dec.2 was 138.19 lek to the euro, according to official rates published by the central bank.
The stronger euro was more noticeable after the tourist season in Albania, leading to depreciation of the lek after a relatively long period of stability and higher revenue from tourism.
Albania’s central bank says there is a direct correlation between changes in the exchange rate and prices in Albania, even for food, because Albania does so much trade with neighbors that use the Euro – Italy and Greece.