Record inflation

Kosovo, despite having adopted a strong European currency (euro), does not differ much from the countries of the region, which have their own currencies, as far as the high rate of inflation is concerned. The Statistical Office of Kosovo (ESK) reports that the inflation measured last month was 4.2 percent, or half less compared to the inflation that reached in July of this year of 8.3 percent. The drop in the price of bread, fruits and vegetables, sugar, etc., also influenced the fall in the rate of inflation.

While according to the statistics of the Central Bank of Kosovo (CBK), the average rate of inflation in the region at the end of June this year had reached 5.2 percent, where Serbia reported the highest rate of 12.7 percent, while the rate of inflation that reported Croatia was the lowest at 2.2 percent.
At the end of September this year, the average rate of inflation in the country was 6.1 percent. However, the inflation trend continues to slow down from month to month, compared to July where inflation reached 8.3 percent, Voice.
According to the CBK, the easing of inflationary pressures is mainly the result of the slight drop in the prices of some food products during this period. "Price movements in Kosovo continue to be largely dictated by the prices of imported products. Until June 2011, import prices recorded an increase of 10.5 percent, which represents a rate close to consumer prices in the country", it was stated, among other things, in the CBK report.
On the other hand, according to the forecasts of the International Monetary Fund (IMF), the countries of the Southeast European region (SEE) are expected to have more pronounced inflationary pressures in 2011. Based on these forecasts, Serbia is expected to have double-digit inflation of 11.3 percent. , followed by Kosovo with an inflation rate of 8.3 percent. The category of food products remains the main contributor to the increase in the rate of inflation in most of the countries of the region.
The rate of inflation in other countries such as Albania, Bosnia and Herzegovina, Croatia and Montenegro is considered more stable mainly as a result of the monetary policies of these countries (excluding Montenegro), but also of the higher level of domestic production, as well as more diversified commercial activity.
While Albania and Macedonia maintain a managed exchange rate, Serbia is the only country in the region where the exchange rate is determined by market movements, which is why price movements are more pronounced.
In Montenegro, prices recorded a smaller increase and this is a result of the lower weight that food products have in the consumer's basket in this country, but also as a result of more diversified commercial activity. Based on IMF forecasts, the restabilization of prices in the countries of the region is expected to occur during 2012. /Telegraph/