For six consecutive months inflation in Albania is above 2%

In July inflation fell slightly, however, for the sixth consecutive month remained above the bottom range of the Central Bank’s target.

According to the Institute of Statistics, inflation in July was 2.3%, from 2.4% in June.

The most affected groups by inflation such as food and water, energy and fuels, experienced a slight decline. Meanwhile, associated with rising fuel prices a slight increase was recorded in the transport group’s inflation.

This year inflation is finally delivering steady growth signals. Although the return process to the target has been slower than forecasts, as in almost all of Europe, the Bank of Albania expects the target of 3% to be achieved by 2020.

The ALL appreciation in the foreign exchange rate, especially against the euro was a factor that curbed inflation growth during the first half of this year.

This is the reason why the Bank of Albania lowered the key interest rate to a minimum historical level of 1%, while simultaneously started foreign currency operations.

The intervention has proved effective to curb the further strengthening of the ALL against the euro, also this recent months the inflation performance seems encouraging  towards the Bank of Albania’s achievement.

SCAN

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