Albanian economy closes 2017 with moderate inflation near to 2%

Inflation in Albania closed 2017 at low levels.

According to the Institute of Statistics, for December, inflation was 1.8%, with a slight increase from 1.7% in November.

The average inflation of 2017 turns out to be near the 2% level, in the bottom range of the Central Bank’s target.

Inflation has risen sharply compared to 2016, when it was 1.3%.

Also, the average annual rate of 2% is the highest recorded in the last five years.

However, this value is lower than the initial projections of the Bank of Albania, which for 2017 expected an inflation close to the 2.3% level.

Lower level of inflation than forecasts has led the Central Bank to postpone the easing monetary policy cycle at least for the coming year as well.

An analysis of this institution claims that low inflation has resulted due to the prices of raw materials of import, but also the strengthening of the Lek at the exchange rate.

During December, a sharp decline in food inflation was reported, down to 2.8%, from 3.7% in November.

Prices of industrial food products, such as sugar, dropped, while modest growth of inflation marked other food products such as meat or vegetables.

But the effect of declining food inflation was partially offset by the “rent, water, fuel, energy” group, up 2.2% from 0.6% in the previous month. Fuel Growth continued for December, boosting the “transport” inflation rate to 2.1%, from 1.9% for November.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.