North Macedonia experienced a notable deceleration in its average annual inflation in October, which dropped from 6.6% the previous month to 3.5% (chart), according to data released by the statistics office on November 7.

This decline in the annual inflation rate aligns with a trend that first emerged in November of the preceding year.

Among the various expenditure categories, furnishings and household equipment saw the most significant annual price surge at 10.3%, followed by other goods and services at 9%, recreation and culture at 8.1%, and food and non-alcoholic beverages at 7.1%.

On a year-on-year basis, prices for food and non-alcoholic beverages experienced a more modest 1% increase.

However, on a monthly basis, the Consumer Price Index (CPI) showed a decline of 1.5% in October, following a marginal decrease of 0.1% in September.

Notably, food and non-alcoholic beverages experienced the most substantial month-on-month price reduction at 3.8%, primarily due to government measures implementing guaranteed prices for essential food items.

The retail price index saw a year-on-year increase of 3.4% and a monthly decrease of 0.6% in October.

In the first ten months of 2023, the overall inflation rate stood at 10.7%.

Looking ahead, the finance ministry aims to bring inflation down to approximately 5% in the coming year, signaling a steadfast commitment to maintaining price stability.

Comparatively, in 2022, average inflation was markedly higher at 14.2%, a notable increase from the 3.2% recorded in 2021.