Database News@lert – Europe & Central Asia: In a world of economic turmoil, the adverse effects on countries’ economies have been numerous. Among these negatives can be high inflation or deflation. The case of Albania is an interesting one to look into. Data show that Albania may be one of the few countries worldwide that has managed to keep inflation rather low for the period February 2010-February 2012. The consumer price index year-over-year reached 0.58% in February 2012, whereas in February 2011 it was 4.47%. Some of the key CPIs have dropped slightly in 2012 compared to 2011—Food and Non-Alcoholic Beverages and Clothing and Footwear decreased by 1.20% and 2.30%, respectively. Other indices, like Alcoholic Beverages and Tobacco, Rent, Water, Fuel and Power, and Education, have increased during 2012 but by less than 1.50%. Two key indices were the exception and had bigger percentage increases: 3.21% for Medical Care and 5.67% for Transport.
Inflation and Consumer Price Index
Chart provided by: CEIC
The CPI figures for the last couple of months show that the inflation target range of the Bank of Albania proves to be rather realistic and that the implemented monetary policy has been successful in fighting inflation. The current inflation level could be good for the consumer at first glance, however, it could also be a symptom of gradually decreasing economic growth in the long term.