Inflation has slowed down since the beginning of the year. The fall in the price of fuel and the appreciation of domestic currency, lek, have had a positive effect, but the central bank warns of another threat, which could affect prices.
Now, the pressure to keep inflation over the 3% level stems from domestic factors such as pay rises and the increase in production costs.
Meanwhile, experts expect the Bank of Albania to increase interest rates once again, which increases the cost of borrowing.
In its latest decision, the European Central Bank decided to further increase interest rate by 0.25% and the same trend has also been followed by the US central bank.
In Albania, inflation rate in January was 6.5%, down from 7.8% the previous month. This is one of the lowest inflation rates in Europe, despite the fact that food prices have seen the biggest leap of up to 20%.