OREANDA-NEWS. April 19, 2011. The consumer prices index in Moldova in March 2011 for the last 12 months amounted to 5.8%, up 0.1 percentage point from the previous month. The annual basic inflation was 2.8%, down 0.4 percentage points from the previous month.

The data of the Office for National Statistics concerning inflation correspond to the National Bank of Moldova’s projection, published in the first this year Report on inflation, the National Bank of Moldova reports. The monthly inflation rate in March was 0.8%, resulting from the 1.7% rise in tariffs for services for population, the 0.7% rise in food prices and the 0.3% increase in the cost of non-food goods.

The monthly inflation rate dynamics in March 2011 was mostly caused by the growth of the administrative prices as a result of the approval of the new tariffs for gas and central heating, rise in food prices, and in prices for fuel and the components belonging to the basic inflation. The annual basic inflation rate continued the decline tendency, started in December 2010, with the 2.8% increase for the last 12 months (0.4 percentage points lower than in the previous month).

In March 2011, the monthly basic inflation rate was lower than in the previous month, amounting to 0.2%. Such evolution resulted from the dynamics of prices for the main components of the basic inflation, as a result of the second-circle effects, after the rise in tariffs for fuel, the increase in demand for building materials as a result of the building industry revival, and growth of food prices. According to the National Bank, the monthly growth of prices for foodstuffs in March 2011 was lower than in February 2011, amounting to 0.7%.

It resulted from the rise in prices for sugar (12.1%), as a result of the persisting difference between home and regional prices, and of the growth of prices for fuel, leading to the growth of transport costs and, as a result, in the rise in prices for fresh vegetables (1.9%) and fruit (1.2%). Prices for fuel in March 2011 grew 1.4 percent in comparison with February 2011 due to the rise in prices for combustible by 4.2% as a result of the growth of import prices and the rise in quotations in the world exchanges.

Such dynamics was partially compensated by the maintenance of prices for liquefied gas in cylinders on the previous month’s level, and by the slight reduction in prices for coal (by 0.3%) as a result of the end of the heating season. After the approval of the new tariffs for gas and thermal energy as a result of the growth of the purchase price for gas, the administrative prices in March grew 2.4%, in comparison with the previous month, contributing to the inflation process dynamics in this period of time.

The rise in prices for energy resources and foodstuffs in the international markets will continue to be the major inflationary risks in Moldova. The inflationary pressure remains stable. The inflation evolution in the next few months will be characterized by the second-circle effects of the growth of prices for fuel and rise in tariffs for electric power and gas. The National Bank of Moldova strictly controls the economy dynamics in the country, as well as the dynamics of the international economic environment to ensure realization of the purpose set in the Medium-term Monetary Policy Strategy through the adequate use of the monetary policy instruments, to maintain price stability.