Albania’s Core Inflation Declines Further in March

Tirana, April 20, 2024-In a positive sign for the Albanian economy, core inflation has continued its downward trend. According to data released by the Bank of Albania, core inflation dropped to 2.73% in March, down from 2.91% in February. This marks the lowest level of core inflation since February 2022.

The first quarter of 2024 also witnessed a significant decline in average core inflation, which stood at 2.85%. This is a notable improvement compared to the 3.42% recorded in the last quarter of 2023.

What Is Core Inflation?

Core inflation is calculated based on a basket of goods that constitute 69% of the Consumer Price Index. It excludes volatile products such as food and energy. Despite internal inflationary pressures, core inflation remains on a downward trajectory, albeit at higher levels than the overall consumer price index.

This decline in core inflation signals that price growth in the Albanian economy is returning within the target range, providing some relief to policymakers and consumers alike.