OREANDA-NEWS. October 19, 2011. The consumer price index in Moldova in September 2011 for the last twelve months amounted to 8.8%, down 0.4 percentage points from the previous month. The annual basic inflation amounted to 4.4%, exceeding the previous month’s indicators by 0.3 p.p., according to the National Bank.

The monthly inflation rate in September increased by 0.4% mostly as a result of the 0.8-percent rise in prices for nonfoods and of the 0.3-percent growth of tariffs for services rendered to the population. The annual basic inflation rate grew for the last 12 months by 4.4 percent (0.3 p.p. higher than in the previous month). In September 2011, the basic inflation growth was 0.5 percent. The indicator’s dynamics was mainly determined by the growth of the teaching and education costs, rise in prices for building materials, perfumes and make-up, clothes, shoes, public catering.

The average food prices in September remained on the previous month’s level. Particularly, potato became 11.5% cheaper, fresh vegetables – 0.4% cheaper, fish and canned fish – 0.2% cheaper. At the same time, eggs rose in price by 6.9 percent, fresh fruit – by 1.9 percent, milk and milk products, meat products and canned meat – by 1%, alcoholic drinks – by 0.7%. Fuel prices in September increased by 2.4%, mainly because of the 7.3-percent rise in liquefied gas’s cost as a result of its deficit on the domestic market as plants-producers in Russia and some other countries were temporarily closed.

Coal prices increased by 1.1% as a result of the increased demand before the heating season. Fuel prices climbed 0.9%. After a considerable growth in the first half of this year, administrative prices in September increased by just 0.1% as a result of the rise in payment for dwelling and other public utilities, partially compensated by the reduction in fees for rail and air transportations and by the decrease in medication prices.

The NBM notes that coming into force of the new natural gas fees starting from October will unavoidably entail growth of the heating-, electricity-, hot water fees, causing an additional inflationary pressure. The secondary effects of this increase will be gradually absorbed in the following periods.