Factors that caused the decrease of the inflation rate in February

Tirana, Albania
17 March, 2016

In a latest press interview, Bank of Albania’s Governor, Genti Sejko said the consumption and investments will increase during the upcoming months, taking in consideration the positive performance of some specific economy indicators. Sejko’s declaration comes after the decrease of the inflation rate during February by 0.2%, for which the bank says it is analyzing the situation to find the factors that caused its decrease.

One of the main aspects that caused the negative performance of the inflation is the high base effect of food inflation in February 2015, due to the massive floods in southern Albania. Another reason, according to Sejko, is the decrease of oil prices in international markets.

The Governor says that the inflation rate decreased only during the past month and that the economy is not experiencing a deflationary situation. “The inflation rate remains below the target set by Bank of Albania (3%) and currently is under its potential, as well as the country’s economic performance,” said Sejko. However, the Governor said firmly that the bank expects the economy to increase more than in the past year.

News source/photo credits: Bank of Albania