Core inflation

The Consumer Price Index (CPI), calculated and published by INSTAT, serves to measure headline inflation. However, the values of headline inflation may also reflect the effects of transitory factors or one-time shocks that are offset over time. Inflation estimated by excluding the impacts of short-term volatilities, one-time shocks, and supply-side shocks is referred to as core inflation. It represents the more stable part of inflation that is affected by demand-pulling factors and, consequently, by monetary policy.

The Bank of Albania, for analysis and decision-making purposes, has developed various measurements of core inflation. The calculations of core inflation according to different alternatives are conducted based on disaggregated CPI series, as published by INSTAT each month. The results of measurements and assessments are updated regularly, around the 18th of each month, or on the following day if this coincides with a holiday.

Data Series