bne IntelliNews – Albanian inflation remains slightly up in April
Albania’s consumer price index remained on an upward trend in April with the index rising to 1.9% annually, statistics office Instat said on May 10. The index also rose 0.2% per month.
The annual change in the CPI has increased since February after falling to just 0.4% in January.
The largest contribution to the annual change in the CPI in April came from food and non-alcoholic beverages, which contributed 1.51 percentage points (pp) to the overall increase.
Compared with April 2020, prices increased the most for food and non-alcoholic beverages, by 4.5%, followed by communication (3.6%), alcoholic beverages and tobacco (1.7%) , leisure and culture (1.3%) and hotels, coffee. home and restaurants (1.0%). The annual price increase for other categories was less than 1%.
Compared with March 2021, the largest increase was recorded in recreation and culture (2.1%), followed by communications (1.3%). There was a slight drop in the prices of health and furniture, housewares and maintenance.
Inflation in Albania has been low and constant in recent years. Last week, the supervisory board of Albania’s central bank, the Bank of Albania, decided to keep the base rate at 0.5%.
The interest rates on the overnight deposit facility and the overnight loan facility also remained unchanged at 0.10% and 0.90% respectively.
Central bank governor Gent Sejko said on May 5 that the supervisory board considered the current accommodative monetary policy to be still adequate to support economic growth and the stable return of inflation to target.
Sejko also noted that “the monetary stimulus will benefit from maintaining the current form of unlimited injections of fixed-price liquidity into the banking sector, at least in the third quarter of this year.”
The bank will continue its accommodative monetary policy over the medium term. “Any timely normalization of monetary policy will be prudent, neither compromising the stability of the economic recovery nor harming the prospects of inflation returning to target,” Sejko said.
According to the findings of the supervisory board, the balance of risks remains on the downside over time – particularly a slower than expected movement from the epidemiological station, a slowdown in credit growth or a longer response. slow for businesses and households to improve financial conditions – while medium term risks appear to be more balanced.