Albania’s inflation steady at 2.1%

Inflation did not report any significant growth even in April.

According to Instat data, the annual growth of consumer price index was 2.1%, with a slight increase from the 2% level in March.

For three months, inflation has been stationed close to the bottom range of the Central Bank’s target.

Following last week’s meeting, the Supervisory Council of the Bank of Albania predicted that this year’s inflation will stay close to these levels, while the growth towards the target of 3% is expected to happen next year.

The return of inflation to the target is slower than forecasts, and the Central Bank itself has delayed its return to the target by the end of 2019, while in previous forecasts it was expected to take place within the middle of the same year.

In addition to the lack of full utilization of the economy’s growth capacity, inflation curbing is increasingly being constrained by factors that are not related to domestic demand.

Low inflation in partner economies leads to weak pressures on external prices, which are further mitigating from the strengthening of the lek in the exchange rate.

SCAN

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