Albania's consumer price inflation eases to 2.1% y/y in May 2013.

By bne IntelliNews June 7, 2013

Albania’s consumer prices increased by 2.1% y/y in May 2013, slowing down from a 2.3% annual rise in April, the statistics institute, INSTAT, said on its website. The growth, however, was above the 1.9% y/y rate recorded in May 2012. In monthly terms, consumer prices declined by 1% in May after edging down by 0.1% m/m in April.
Food prices increased by an annual 4.9%, continuing its upward trend from the past five months. The growth was mainly driven by a 28.6% rise in vegetable prices and an 5.7% y/y increase in prices of fruits. Prices of alcoholic beverages and tobacco went up 4.3% y/y in May after advancing 3.5% y/y in the previous month. Communications and education services costs grew by 1.3% and 1.8% y/y, respectively, advancing at the same pace as in the previous four months. Costs of transport reversed to a 0.5% y/y rise, which resulted from a 0.9% y/y growth in the costs of both equipment operations of personal transportation and transportation services. By contrast, lower prices of clothing and footwear (down 3.6% y/y) continued to exert downward pressure on the inflation. Regulated prices registered a 1% y/y drop in the month.

In our estimates, the average inflation rate was equal to 2.4% in January to May 2013, up from 1.3% in the same period of 2012.

The central bank decided on May 29 to keep the base interest rate at its historic low of 3.75% for a fourth consecutive month after cutting it by 25bps in January. The decision is in line with the objectives to meet the mid-term inflation target, while providing necessary stimulus to support lending growth and consumption.

Consumer prices, % y/y            
  May-12 Jan-13 Mar-13 Apr-13 May-13 Jan-May 2013
TOTAL  1.9 2.7 2.4 2.3 2.1 2.4
Food and Drink  1.9 4.4 5.6 5.7 4.9 5.1
Alcohol and Tobacco  1.2 3.8 3.6 3.5 4.3 3.8
Clothing and Footwear  -2.0 -3.1 -3.4 -3.4 -3.6 -3.4
Rent and Utilities    1.3 0.3 -0.5 -0.9 -1.0 -0.5
Furniture and Maintenance  1.6 1.3 1.3 1.2 0.7 1.2
Healthcare  3.5 1.4 1.1 0.1 0.1 0.8
Transportation  4.1 1.5 -0.7 -0.3 0.5 0.3
Communication  -0.1 1.3 1.3 1.3 1.3 1.3
Recreation and Culture  1.8 1.7 0.8 0.3 0.4 0.9
Education  1.5 1.8 1.8 1.8 1.8 1.8
Hotels and Restaurants  1.9 1.9 1.7 1.8 1.5 1.8
Others  5.9 7.5 -3.5 -3.6 -3.6 0.2
Source: INSTAT            

Related Articles

Albanian PM says new government to get rid of “parasites” in administration

Dismissing "parasites" in the public administration will be the priority of the Socialist-led government during its second mandate, Albanian Prime Minister Edi Rama has said, ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

First female party leader elected in Albania

Albania’s third largest party, the Socialist Movement for Integration (LSI), elected Monika Kryemadhi as its new leader on July 5. Kryemadhi will be the first woman to lead a political party in ... more

Dismiss