TIRANA, June 18 (Xinhua) -- Albanian core inflation rate in May fell to 2.33 percent from 3.2 percent at the end of 2023, marking the lowest since October 2021, said the Bank of Albania on Monday.
According to the National Institute of Statistics, the overall inflation rate, which includes the full basket of consumer prices, stood at 2.2 percent for May.
Core inflation figures, calculated by the Bank of Albania, exclude highly volatile items such as food and energy products to avoid short-term fluctuations.
The comparatively strong value of Albanian lek is believed a major contributor to the low inflation rate. But if the core inflation rate continues to fall, the Bank of Albania may be forced to lower its interest rate. Albania's interest rate stands at 3.25 percent, one of the lowest in Europe.
The slow growth of wage in the first quarter, particularly in the private sector, also contributed to maintaining a low inflation rate. Additionally, the strong Albanian lek has raised concerns at the Bank of Albania, which has taken measures to stabilize the currency's value against the euro at a level of 100 to 1 over the last two months. If the trend continues, further actions are anticipated. ■
