Algeria's inflation remained stable in September at 2.1% compared to the year-earlier period, after having accelerated to 2% in August from 0.9% in July and 1.3% in June, according to figures released by the National Statistical Office on Sunday (October 22nd). The rise was due to a 4.4% increase in September food prices. Prices had been on the decline since the beginning of the year, but picked up in May. Fresh produce recorded an 8.6% price increase, with vegetable prices jumping 16%.

Rising food prices, in addition to government spending of $1.4 billion on wage and pension hikes, are expected to create inflation pressure until the end of the year. However, Algeria is likely to maintain a moderate inflation level of close to 4.5% in this year, up from 1.6% in 2005.

Algeria's inflation remains stable at 2.1% in September