Rising prices / Sejko: Inflation Inflation should remain high

Rising prices / Sejko: Inflation Inflation should remain high

The Governor of the Bank of Albania, Gent Sejko, stated this Wednesday that inflation in the country will remain at high levels, as a result of the war in Ukraine.

Sejko said that inflation has marked a large increase in the first quarter of this year, marking a peak in March with 5.7%.

Banka Shqiptare is monitoring the situation and will intervene if necessary.

"The world economy and the Albanian economy will continue to be hit by the war. The shock has raised prices and increased uncertainty. Inflation has risen as the economy slows. Inflation will be long above the target, while the supply shock will be stronger than expected. The conflict in Ukraine and sanctions have led to disruptions in production and distribution. Banks have tightened policies. In the first quarter of the year inflation was 4.4%. Rising inflation was driven by rising oil and food prices. The increase in the interest rate has favored the stabilization of the exchange rate. But its effect has not yet appeared in full. Throughout 2022 inflation will be at current conditions. The BoA will closely monitor inflation growth and remains ready to intervene if necessary.