OREANDA-NEWS. October 13, 2010. According to the National Bank of Moldova, the annual core inflation (over the last 12 months) reduced in September 2010 by 0,4 pp – up to 4,8% and is within the object limits set at the end of the year.

The data on the evolution of index of consumer prices and core inflation coincide with the NBM’s projections, published on August 5, according to which the index of consumer prices at the end of this year will account for 8,2%, and the core inflation – 6,2%. In September the annual inflation, measured through the index of consumer prices over the last 12 months, accounted for 8%, corresponding to the NBM’s projection.

The evolution of monthly inflation level and its entry in the predicted limits is caused mainly by the growth of prices for foodstuffs and nonfoods by 2% and 0,3%, respectively, while the tariffs for services, rendered to the population, were stable. Excluding the seasonal factor, the monthly inflation in September increased against August mainly due to the growth of prices for foodstuffs.

The influence of fuel cost, exerted on the monthly inflation rate in this period was small, while the core inflation and the regulated prices didn’t influence the rate of monthly inflation. The core inflation was within the annual object, increasing over the last 12 months by 4,8%. At the same time, after the reduction since the beginning of the year, in September 2010 the monthly rate of core inflation amounted to 0,2%, increasing by 0,2 pp. against August due to increase of prices for almost all components of the index.

In September the dynamics of prices for products and services, included in the calculation of core inflation, was considerably affected by the seasonal effect. The index of consumer prices over the last 12 months is by 3,2 pp. more than the core inflation, indicative of heightened influence of nonmonetary factors on the inflationary process.

The prices for foodstuffs interrupted the reduction, started in May, increasing in September by 2% against August, because of the seasonal factor, modest harvest of some agricultural crops, as well as increase of prices for foodstuffs on the international markets. The seasonal factor in the winter period makes for the growth of prices for agricultural products.

In September 2010 the prices for fuel increased by 0,6% as compared to August due to the growth of prices for liquefied gas by 2,7% and coal – by 0,1%. After the increase of tariffs in January-June 2010 the considerable growth of tariffs for regulated services wasn’t registered in the following period, thus in September they remained at the August’s level 2 months running.

The NBM intends to continue to follow attentively the evolution of macroeconomic indexes, situation on the monetary and foreign exchange markets, international economic tendencies. In case of deviation of the medium-term projection from the object in view it will use the instruments of monetary policy promptly and adequately in order to achieve the goals, stipulated by the Strategy of monetary-credit policy for a medium term perspective 2010-2012.