Page 33 - SE Outlook Regions 2023

Strong growth was also recorded for prices of furniture, household
goods and maintenance (6.5% y/y), hotels, coffee houses and
restaurants (6.1%), alcoholic beverages and tobacco (5.7%) and
housing, water, electricity and other fuel (3.6%).

Transport prices also showed the strongest m/m increase, rising by
1.5%. Most other groups had a smaller increase, while prices fell for
recreation and culture, alcoholic beverages and tobacco and education.

In November, the Bank of Albania raised the base rate by 0.5 of a
percentage point to 2.75%.

The Albanian central bank said that high inflationary pressures remain
the main risk to sustainable and long-term growth in the country. A
statement from the central bank said that the gradual normalisation of
monetary policy is necessary to rein in inflation, and the normalising
cycle will continue.

The Bank of Albania expects that over the next two years the Albanian
economy will continue to grow and inflationary pressures will decrease.

Inflation is predicted to remain high in the fourth quarter of the current
year, but to be progressively reduced during 2023 and to return to the
target in the second quarter of 2024.

33 SE Outlook 2023 www.intellinews.com