Albania’s Consumer Price Index (CPI) went up by 1.9% y/y in October, accelerating from a 1.6% y/y increase a month earlier, statistics office data indicated on November 8.
In the same period a year earlier, Albanian inflation was 1.5%. The annual inflation rate averaged 1.7% in the third quarter, down from the rates recorded in the previous two quarters, due to supply-side shocks, which is expected to have effects of limited intensity that are short lived.
The main contributor to the annual rise in the CPI in October was the “food and non-alcoholic beverage” group, which rose 4% y/y and contributed 1.53 percentage points to overall growth. Prices of clothing and footwear increased the most in monthly terms, +1.6%.
A rise of 1.1% y/y in "housing, water, electricity and other fuel” prices contributed 0.23pp. "Alcoholic beverages and tobacco" ticked up by 0.4% y/y.
The CPI declined y/y in only two sectors – "clothing and footwear" (-0.4% y/y) and "furniture and household goods" (-0.2% y/y). In monthly terms, Albania’s CPI edged up only 0.04%, after rising by 0.4% in September.
Inflation is expected to reach the target rate of 3% in 2018.