Inflation drops to 2.2% undoing January’s temporary growth
Inflation fell again in February, confirming the temporary nature of growth close to the BoA objective during January.
According to data from the Institute of Statistics, the annual inflation rate fell to 2.2%, from 2.8% that was in January.
Rising inflation for January was reported mainly due to higher prices of food and fuel, including the effect of the excise duty on LPG used by vehicles.
While the effect of fuel continued throughout February, reflected in a further growth of inflation for the group “transport”, food price inflation has eased significantly compared to January.
In February, the group “food and beverages” recorded an inflation of 3.9%, from 5.8% that was in January.
This reduction had a clear effect, leading to a lower average inflation in February.
However, the group of food continues to be the main contributor to the inflation in the Albanian economy.
Fresh agricultural products, in particular, continue to have high levels of annual inflation.
Regarding other commodities, inflation remains at modest levels.
The group “clothing and footwear” in February returned to a negative inflation rate, after having a positive growth during the previous four months.
Although it is estimated that the economy and domestic demand are on a steady path of improvement, the sustainable comeback of inflation close to the target will still require some time.
The Bank of Albania expects that this will occur in the first half of 2018.
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.