UPDATE 1 - Albania's Oct CPI Rises 0.1% M/M, Up 2.8% Y/Y

On an annual basis, the country's consumer price inflation accelerated to 2.8% in October from 2.7% in September, INSTAT said in a monthly report.

The month-on-month CPI increase in October was largely due to a 5.0% increase in vegetable prices and a 0.8% increase in meat prices. Prices of sugar and sugar products were up by 1.5% on the month. Fruit prices were down by 0.8% on the month.

The annual rise in CPI was mainly due to a 18.4% increase in the price of bread and cereal products, a 10.8% growth in oil prices and a 15.3% rise in water prices. Vegetable prices fell by 16% year-on-year.

CPI reached 101.31 points in October compared to its base of 100 points in December 2007. In September the index measured 101.25 points.

In October 2007, consumer prices went down by 0.1% on the month but were 4.2% higher on the year.

Albania's October 2008 consumer prices (pct change):

NOTE: Albania targets an average annual inflation rate of 3.0% this year, the same as last year. The average annual inflation rate for 2006 was 2.36%, compared to 2.4% in 2005.