Albania’s consumer prices increased by 2.3% y/y in June 2013, speeding up from a 2.1% annual rise in May, the statistics institute, INSTAT, said on its website. The growth was also above the 2.2% y/y rate recorded in June 2012. In monthly terms, consumer prices declined by 0.6% in June, slower than the 1% m/m drop in May.
The overall trend was again determined by food prices, which grew 5.4% y/y, speeding up from 4.9% y/y in May. The growth was mainly driven by a 30.6% rise in vegetable prices and a 10.7% y/y increase in prices of fruit.
Prices of alcoholic beverages and tobacco went up 4.1% y/y in June after advancing 4.3% y/y in the previous month. Communications costs grew by 1.3% y/y advancing at the same pace as in the previous five months.
Costs of education services increased 2.2% on the year. Prices of transport grew by 1% y/y as a result from 1.4% 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 4.5% y/y) continued to exert downward pressure on the inflation. Regulated prices registered a 0.5% y/y drop in the month as well.
In our estimates, the average inflation rate was equal to 2.4% in January to June 2013, up from 1.5% in the same period of 2012.
The central bank decided at its latest meeting on June 26 to keep the base interest rate at its historic low of 3.75% for a fifth 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|
|Food and Drink||2.7||4.4||5.6||5.7||4.9||5.4||5.2|
|Alcohol and Tobacco||1.1||3.8||3.6||3.5||4.3||4.1||3.9|
|Clothing and Footwear||-2.3||-3.1||-3.4||-3.4||-3.6||-4.5||-3.5|
|Rent and Utilities||1.3||0.3||-0.5||-0.9||-1.0||-0.5||-0.5|
|Furniture and Maintenance||1.6||1.3||1.3||1.2||0.7||0.5||1.1|
|Recreation and Culture||2.1||1.7||0.8||0.3||0.4||0.4||0.9|
|Hotels and Restaurants||1.9||1.9||1.7||1.8||1.5||1.9||1.8|
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