UPDATE 1 - Kosovo's Oct CPI Rises 1.0% M/M, Up 4.5% Y/Y

In September, consumer prices in Kosovo were 0.1% higher than in August and 7.8% higher on the year, the office said in its monthly report.

In October 2007 Kosovo's CPI was 4.1% up on the month and 10.7% higher that a year earlier.

On a monthly basis, October inflation accelerated mainly due to a 19% rise in the prices of vegetables. Prices for electricity, gas, fuel and wood for heating went up by 11.5%. Prices of meat and meat sub-products rose by 1.0%. Prices of bread and wheat products fell by 1.8%. Fruit prices also went down, by 7.1%.

On an annual basis, October inflation was largely due to a 15.1% rise in meat and meat sub-products prices. Prices of milks, dairy products and eggs went up by 10.4%, while prices of electricity, gas and fuel increased by 5.9%. Prices of vegetables fell by 3.3% on the year.

Kosovo's CPI reached 112.9 points in October, compared to a base 100 points in May 2002. In September the CPI measured 111.8 points.

The average annual CPI measured 102.8 points in 2007. The average annual inflation for 2007 is estimated at 4.3%.

Kosovo October Consumer Price Index (pct change):

Kosovo, where 90% of the population is ethnic Albanian, declared its secession from Serbia on February 17, after almost nine years under the administration of the United Nations. Serbia, backed by its historical ally Russia, says it would never recognise Kosovo as an independent state. Over fifty countries have recognised Kosovo as an independent state since.