OREANDA-NEWS. December 01, 2010. The consumer price index in Moldova for the last 12 months in October of this year amounted to 8%, remaining on the previous month’s level. The annual inflation rate increased by 1.5% in October in comparison with September due to the seasonal factor of the rise in prices for foodstuffs and a more expressed inflation pressure caused by the rise in prices for fuel, according to the National Bank of Moldova.

The basic annual inflation (for the last 12 months) in October of this year amounted to 4.9%, up 0.1 percentage points, and is within the goal set for the end of the year. The difference of 3.1 percentage points between the annual growth of the consumer price index and the basic rate confirms the growing impact of non-monetary factors on the inflation process.

The National Bank notes that preservation of risks coming from the international financial instability, high unemployment rate on the international labor markets and budget restrictions of the EU member states contributed to preservation of the deflation process. At the same time, the increased volatility on the oil market will have a considerably impact on the inflation evolution in the next period, and prices for foodstuffs have a tendency towards rise.

The National Bank of Moldova says the country’s economy gives clear signals of rehabilitation and acceleration of the economic growth, what can cause the increase in inflation pressure. The National Bank points out the tendency towards the growth of industrial production rates from 0.2% in July to 16.8% in October 2010, improvement of the situation with retail, export and investments into the fixed capital. The balance of credits and deposits continued the tendency towards growth.