Albania's CPI inflation speeds up to 2% y/y in August 2014

By bne IntelliNews September 9, 2014

Albania's consumer prices increased by 2% y/y in August 2014, speeding up from a 1.8% y/y growth recorded in July, the statistics institute, INSTAT, said on September 8. The annual growth in August was also up from its year-ago level of 1.2%.

In monthly terms, consumer prices edged up by 0.1% in August, reversing a 0.6% drop the month before.

Food prices, which traditionally determine the overall trend, grew by 3.2% y/y, accelerating from a 2.6% y/y rise in the previous two months. The growth was mainly driven by a 7% y/y rise in fruit prices and a 25.6% jump in vegetable prices. The costs of all other food items (except of milk, fish and meet) declined in annual terms in August.

Prices of alcoholic beverages and tobacco increased by 7.1% y/y in August, speeding up from a 6.9% y/y increase in July.

Transport charges advanced by 1% y/y, driven again by the growth in equipment operations of personal transportation - of 1.6% y/y.

On the other hand, lower prices of clothing and footwear (down 2.3% y/y), communications (down 0.8% y/y) and medical care (down 5.6% y/y) continued to dent the CPI growth. Among others, the cost of household furniture declined by 0.5% y/y.

In our estimates, the average inflation rate was equal to 1.8% in January to August 2014.

Consumer prices, % y/y              
  Aug-13 Jan-14 May-14 Jun-14 Jul-14 Aug-14 Jan-Aug 2014
TOTAL  1.2 1.7 1.6 1.5 1.8 2.0 1.8
Food and Drink  2.8 2.7 2.1 2.1 2.6 3.2 2.5
Alcohol and Tobacco  3.9 7.3 6.6 6.9 6.9 7.1 6.9
Clothing and Footwear  -3.8 -2.7 -2.8 -2.0 -2.2 -2.3 -2.7
Rent and Utilities    -0.5 2.0 1.8 1.2 1.3 1.1 1.7
Furniture and Maintenance  0.5 -0.7 -0.8 -0.8 -0.6 -0.5 -0.7
Healthcare  -1.5 -1.3 -5.3 -6.3 -6.1 -5.6 -3.9
Transportation  0.3 0.6 0.6 1.0 1.2 1.0 0.8
Communication  1.3 -2.8 -1.2 -1.3 -0.7 -0.8 -1.7
Recreation and Culture  0.8 -0.2 0.4 0.3 0.0 -0.2 0.1
Education  2.2 0.3 1.1 0.8 0.8 0.8 0.8
Hotels and Restaurants  2.7 1.8 2.7 2.4 2.5 1.9 2.3
Others  -2.0 1.6 8.0 8.2 8.5 7.8 7.7
Source: INSTAT              

Related Articles

The numbers of foreigners visiting Albania continues to edge up as travel companies extol its virtues

Albania is becoming an increasingly popular destination for both foreign visitors and Albanians as the numbers continue to increase. In the first five months of 2017 the number of ... more

Albania to step up war on drugs after critical EU report

Albanian Interior Minister Dritan Demiraj said the government would increase its efforts to eradicate drug cultivation and trafficking after the latest European ... more

Albania’s two richest men acquire Insig’s life insurance unit

Albania’s two richest businessmen have diversified their investments in the insurance market by acquiring the life insurance unit of the newly privatised Insig insurer, local media reported. ... more

Dismiss