Kosovo's consumer price inflation slowed down to 0.2% y/y in September from 1.2% in August, on falling transport, food and utilities charges, the statistics office reported. Compared to a month earlier, the CPI fell by 0.2% following a 0.1% m/m decline in August and a 0.4% m/m drop in July.
Prices of food and non-alcoholic beverages decreased on an annual basis for a first time since July 2012. They declined by 0.7% y/y, thus weighting down the CPI by 0.26pps. In monthly terms, the drop was slightly bigger (-1%). Transport-related goods and services cost dropped 3.3%y/y, pushing the overall inflation index down by 0.53pps. The housing and utilities prices were 1.7% lower in September 2013 compared to a year earlier (0.12pps negative contribution to the overall CPI).
Kosovo's core inflation is expected to remain at around 2% in 2013, the IMF said in an Article IV report in June. Headline inflation is projected at 2.4%. The EBRD expects the annual average inflation in Kosovo to slow down to 2.5% in 2013 from 3.3% in 2012.
|Weight in CPI basket||Jul-13||Aug-13||Sep-13|
|Food and non-alcoholic beverages||37.8%||3.8%||1.8%||-0.7%|
|Alcoholic beverages, tobacco||5.2%||5.7%||5.5%||5.6%|
|Clothing and footwear||7.2%||2.7%||2.6%||3.2%|
|Housing, water, electricity, gas and other fuels||7.1%||-0.3%||-1.2%||-1.7%|
|Furnishing, household equipment and routine maintenance of the house||10.0%||1.0%||1.3%||1.5%|
|Recreation and culture||4.5%||0.3%||0.4%||0.2%|
|Restaurants and hotels||4.1%||1.3%||0.9%||0.9%|
|Miscellaneous goods and services||3.0%||10.7%||10.8%||10.2%|
|Source: statistics office|
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