Albania’s Import Price Index (IPI), which measures changes in the prices of imports, fell by 1.4% y/y in the fourth quarter of 2017, after dropping by 1.7% y/y in the previous quarter, statistics agency data showed. The index reached 95.5% compared with the base year 2012.
The index dropped in Q4 mainly due to the decline registered in the key manufacturing industry. Albania has historically run a substantial trade deficit caused by its narrow production and export base.
The main sources of imports to Albania are Italy, Germany, China, Greece, Germany and Turkey. Minerals and fuels, machinery and equipment, food and beverages, construction materials, chemical and plastics products, as well as textiles and footwear are the import sectors that have the highest values.
The IPI in the mining and quarrying sector rose by 1% y/y and fell by 1.6% y/y in the manufacturing sector in Q4, the data indicated.
The index jumped 12.8% y/y in the electricity, gas, steam and air conditioning sectors and ticked up 0.6% y/y in the water supply and water management sectors.
Compared with the previous quarter, the Import Price Index went up by 0.4% in Q4, after going down by 0.8% in the previous quarter.