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Inflation rises suddenly in May, food prices increase by 10%, the fall of the euro does not help
After six months in a row, when it showed signs of slowing down, price growth accelerated again in May, against the expectations of the Bank of Albania that the indicator would have a gradual decrease throughout this year.
INSTAT announced that the annual change in the consumer price index in May 2023 is 4.7%, a year ago this change was 6.7%.
Since October 2022, when inflation reached 8.3%, the highest level since 1998, the indicator had fallen steadily until April, when it fell to 4.6%, before returning to a slight increase in May.
The significant drop of the euro and the dollar, which theoretically should lower the prices of imported products, does not seem to have had an impact either, since importers with the same amount of lek can buy more currency and therefore more goods.
The main impact on the increase of inflationary pressures was given by the increase in the price of food. According to INSTAT, the annual increase in prices in the month of May was mainly influenced by the group "Food and non-alcoholic beverages" with +3.58 percentage points, followed by the group "Furniture, home appliances and home maintenance" with +0.47 percentage points. Prices of the "Rent, water, fuel and energy" group with +0.41 percentage points. Prices of the "Hotels, cafes and restaurants" and "Miscellaneous goods and services" groups with +0.22 percentage points each. The prices of the "Alcoholic beverages and tobacco" group increased by +0.18 percentage points. "Entertainment and culture" group awards with +0.16 percentage points. The prices of the group "Clothes and shoes" with +0.15 percentage points. The prices of the groups "Health" and "Educational service" with +0.06 percentage points each. The "Communication" group awards have contributed +0, 04 percentage points. "Transport" group prices with -0.82 percentage points.
The Bank of Albania stated earlier that inflation has had a downward trend, influenced by the general drop in inflation in the world environment, the effect of the high comparative base of the previous year and the first effects of the normalization of the monetary policy stance.
The bank's forecasts suggest that inflation will continue its gradual decline this year and return to target by the first half of 2024. However, wage growth was expected to add to inflationary pressures.
Ndryshimet vjetore të grupeve kryesore: Krahasuar me muajin Maj 2022, rritja më e madhe e çmimeve vërehet në grupin “Ushqime dhe pije joalkoolike” me 10,0%, pasuar nga grupet “Argëtim dhe kulturë” me 6,9%, “Mobilje, pajisje shtëpie dhe mirëmbajtje e shtëpisë” me 6,5%, “Hotele, kafene dhe restorante” me 5,0%, “Veshje dhe këpucë” me 4,2%, “Mallra dhe shërbime të ndryshme” me 4,0%, “Pije alkoolike dhe duhan” me 3,7%, “Qira, ujë, lëndë djegëse dhe energji” dhe “Shërbimi arsimor” me 2,2% secili, “Shëndeti” me 1,4% dhe “Komunikimi” me 1,2%. Nga ana tjetër çmimet e grupit “Transporti” shënoi ulje me 12,3%.
Within the food group, the prices of the subgroup "vegetables including potatoes" increased by 18.3%, followed by the subgroups "milk, cheese and eggs" which increased by 14.3%, "meat" by 12.1%, "fruit" with 12.0%, "fish" with 9.2%, "bread and cereals" with 4.5%, "sugar, jam, honey, chocolate and sweets" with 4.1%, etc.
Monthly changes of the main groups: Compared to April 2023, the prices of the groups "Food and non-alcoholic beverages" and "Transportation" decreased by 1.2% each.
On the other hand, the prices of the group "Entertainment and culture" increased by 1.2%, followed by "Hotels, cafes and restaurants" by 0.9%, "Clothing and shoes" by 0.5%, "Alcoholic beverages and tobacco" and "Miscellaneous goods and services" with 0.4% each, "Furniture, household appliances and home maintenance" with 0.3%, "Rent, water, fuel and energy" with 0.2% and " Educational service" with 0.1%. Monitor