Inflation at 1.7% for November, fluctuating performance confirmed

Inflation fell again for November, confirming a fluctuating performance. According to data from the Institute of Statistics, inflation fell to 1.7%, from 1.9% that it was in October.

Determinant was the decline of inflation in the food group to 3.7%, from 4% in October and in the group “lease, water, fuels and energy” to 0.6%, from 1.1% than it was in the previous month.

Within the food group, the main contribution in the decline was given by the prices of processed food, mainly due to imports, something that indicates that supply factors continue to have a significant impact on low inflation.

The increase of fuel prices has boosted the inflation of “transport” group to 1.9%, from 0.4% for October.

However, this increase was not sufficient to bring inflation within the target range of the Bank of Albania.

The lower value of inflation than forecasts has led the Central Bank to postpone the facilitating monetary policy cycle at least for the coming year as well.

An analysis of this institution states that low inflation has come as a result of the prices of imported raw materials, but also due to the strengthening of the ALL at the exchange rate.

However, the Bank of Albania expects inflation to return to the target of 3% within the next year.

SCAN

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