Inflation decreased in Albania by 0.3%

Inflation is expected to pursue a growth trajectory in the next quarter in Albania, though it resulted in an average annual rate of 1.7% in the third quarter of 2017, standing 0.3% lower than in the previous quarter.

According to the BSH, the decline in inflation rate was generated mainly by reductions in prices of processed food goods and transport services. The declining behavior of food inflation is also noted in most countries in the region during the third quarter of the year.

Other basket categories kept the same contribution profile as in the past quarter. Overcoming the exchange rate continued to exert deinflation pressures on the economy. Both food categories continue to maintain dominant weight in forming total inflation (about 80%). However, their contribution dropped from 1.6 percentage points in the second quarter to 1.4 percentage points in the third quarter.

The main declining weight gave away the “processed supply” category, whose contribution decreased from 0.5 to 0.2 percentage points. cereal prices, as an important part of this category, have shown declining inflation rates compared to the beginning of this year. Compared to the past quarter, the contribution of the “crude property” category marked growth.

The positive contribution of the “non-food consumption category” stored nearly the same value (0.2 percentage point) by a quarter ago. Within this category, fuel contributions and subgroup “shoe deal” marked the significant slowdown. Lower contributions marked the “category Service”, due to the loss of prices of transportation services and the loss of engine safety prices. Categories “Stream” and “Long-term consumption” contributed to the same mass inflation compared to a quarter ago. The second category, even for this quarter, was the only one that had negative signs of contribution (-0.1 percentage point).