NBM Analyzes Inflation Processes in Moldova
OREANDA-NEWS. July 14, 2010. According to the NBM, it will be possible in case when the dynamics of inflation processes and price evolution, registered in May-June 2010, will be preserved. The index of consumer prices in Moldova (over the last 12 months) in June amounted to 7.8%, reducing by 0.1 pp as compared to May.
The core annual inflation (over the last 12 months) amounted in June to 5.3% and reduced by 0.1 pp as compared to the previous month. The inflation data completely coincide with NBM’s projections. The core inflation is within object limits set at the end of the year. At the same time, though the inflation reduces the second month running, the inflation pressure remains. The stabilization of annual inflation rate in June was due to the compensation of services costs growth, rendered to population, and reduction of prices for food. As compared to June 2009, the prices for nonfood products remained unchanged.
The monthly core inflation rate keeps the tendency to reduction since the beginning of the year, owing to the strengthening of lei’s position against the foreign currency of the main trade partners of Moldova (EU and Russia) and low level of demand totality in the national economy. The reduction in priced growth for food products is due to favorable weather conditions in this year, resulted in the reduction of prices for fresh vegetables and potato, meat, meat products and tinned meat, milk and dairy products.
Thus, in June the prices for food products reduced by 2.5% as compared to May. The regulated prices increased by 2.1% as compared to the previous month, mainly due to the increase of tariffs for heat energy and natural gas, by 5.9% and 7.9%, respectively. In June 2010 the fuel prices reduced by 0.1%.
The NBM is intended to follow attentively the evolution of macroeconomic indexes, situation on monetary and foreign exchange markets, international economic tendencies in the future. In case of departure of middle-term forecast from the object in view, the instrument of monetary policy will be used timely and adequately. As it was reported earlier, the NBM predicted 10.8% level of inflation for 2010.
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