Quarterly Monetary Policy Report 2005

The second semester of 2005 generally marked a favourable period for the country’s economic development.

Annual inflation in November marked 3.0 per cent, fluctuating to the mid-targeted band 2-4 per cent of the Bank of Albania.

Annual inflation rate in October marked 3.3 percent, compared to 3.1 percent in September, thus remaining close to the mid-targeted band of the Bank of Albania. Average annual inflation rate marked a level of 2.3 percent, while monthly inflation was 0.4 percent

The nine-month period of 2005 was characterized by positive highlights with regard to economic growth and macroeconomic stability. The economic activity has generally moved in line with the directions projected by the country's development program.

Annual inflation highlighted a slight increase in August, returning within the targeted band of Bank of Albania. Annual and monthly inflation rates were 2.3 per cent and 0.2 per cent, respectively.

Annual inflation rate in July decreased to 1.8 percent, from 2.9 percent in June,being very close to the lower limit of the targeted band of the Bank of Albania.

During the first half of 2005 the Albanian economy is characterized by positive developments within the expected parameters.

Annual inflation rate was 2.0 per cent in May, from 1.3 per cent in April, thus coinciding with the lower limit of the targeted band of Bank of Albania...

First months of 2005, though under the conditions of incomplete data, seem to have maintained the paces observed recently. First quarter of 2005 is assessed as having maintained unchanged the main macroeconomic ratios present during the last quarter.

Annual inflation rate of March was 1.7 percent, whereas monthly inflation rate was 0 percent. Annual inflation rate during first quarter of 2005 was 2.5 percent, close to lower limit of the targeted band of the Bank of Albania.

Annual inflation rate was 3.3 percent in January, being within the 2-4 percent of targeted range of the Bank of Albania. The average annual inflation of January marked 2.9 percent.