Inflation drops at 1.9%, far from Bank of Albania plans
08/05/2017 00:00
The Washington Agreement Must Be Reactivated! 06/01 19:04
Price growth slowed down for the third consequent month, lower than the legal objective of the Bank of Albania.
The Institution of Statistics reported that the annual inflation marked 1.9% from 2.1% that it was one month ago.
According to INSTAT, food price has had the main influence. They have increased with 3%, compared to one year ago. The second element with the highest impact is transportation. INSTAT says that compared to one year ago, the transportation cost for citizens has increased with 4.3%.
Although transportation prices have increased, this wasn’t enough to bring inflation back to 3%, which is the preferred quota of the Bank.
The government increased public administration salaries with 10%, but it has not increased inflation, since the price of several goods has reduced with 2.3% and 0.3%, compared to one year ago.
The dropping tendency of the inflation during the past three months might bring new concerns about the Bank of Albania.
Usually, when prizes are increased slowly, it means that consumption has dropped. This is why the Bank prefers an inflation of at least 3%, which is considered healthy for the economy.
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