Monetary policy report 2012 Q1

In the first quarter of 2012, the Albanian economy continued to maintain the parameters of macroeconomic stability, even in the context of the ongoing global economic crisis. Annual consumer price inflation slowed down significantly, averaging 1.1% in this period, reflecting the restrained food price rise and stable prices of other consumer basket items over this period. Reduction of actual inflation rates, shifting down of inflationary pressures and below-potential growth of aggregate demand, against the backdrop of a contained fiscal policy, made room for further monetary stimulus to the economy during the first quarter of 2012.