Annual Report 2008 - Chapter II. The Albanian Economy

Production date: 21.05.2009

Printed on: 21.05.2009

Author: BANK OF ALBANIA

 

 

Notwithstanding the sharp oscillations, the year 2008 witnessed satisfactory consumer price stability. Annual inflation fluctuated within a band of 2.2 to 4.6 percent, remaining within the Bank of Albania tolerance band of 2-4 percent during the major part of the year. Average annual inflation rate for the year 2008 marked 3.4 percent, remaining close to the Bank of Albania 3 percent target1. Triggered mainly by the rise in primary commodity prices (foods and oil)2 in the international markets and the increase in electricity tariffs at home3, average annual inflation marked 3.7 and 4.2 percent over the first and second quarter of 2008. Annual inflation declined over the course of the second half of 2008, owing to the fall of primary commodity prices in the international markets.