Inflation in January at 1.7%: Instat

Inflation has started 2018 at slow rates.

According to the Institute of Statistics, inflation in January was 1.7%, down slightly from 1.8% in December.

While compared to the previous year, inflation is significantly lower.

In January last year, inflation reached 2.8%, mainly due to the extremely cold winter’s effects on food prices.

To a large extent, the rising inflation rate a year ago makes the comparative basis for inflation in the beginning of this year to be higher than the normal price trend.

Consequently, it may be expected that, in the coming months, there will be a growing correction in line with Bank of Albania projections.

Growth in food prices continued to fade in January, down to 2.2%.

It suffices to recall that a year ago inflation of the food group had been 5.8%.

Instat reports that meat prices had a weak growth, while vegetable and sugar prices fell even worse compared to last year.

Meanwhile, poor food inflation was partially offset by a higher price increase in “rent, fuel, energy”,  “alcoholic beverages and tobacco”, as well as “footwear and wear”.

Following the meeting of the Supervisory Council on Wednesday, the Central Bank stated that aggregate demand remains insufficient to fully utilize the productive capacity of the economy and to strengthen inflationary pressures.

Imported inflation continues to remain weak as well, coupled with the strengthening of the ALL at the exchange rate.

SCAN

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