OREANDA-NEWS. July 13, 2012. The annual core inflation made up 4.3%, 0.1 p.p down as compared with the previous month. The monthly inflation decreased 0.3%, which was explained by 0.7% lower prices for foods, 0,4% higher tariffs for services for population and 0.4% lower prices for nonfoods.

The deflation in June, 2012 is explained by a seasonal decline in prices for foodstuff and a decrease in prices for oil in international markets. The annual core inflation made up 4.3% in June, 0.1 p. down as compared with the previous month. Since October, 2011 the core inflation growth rates have slowed down.

This is explained by the moderate growth of external and domestic demands caused by a slower increase in incomes of the population and by ambiguity created by the sovereign debt crisis in the area of Euro. However this trend contributed to the comparatively high rate of Moldovan lei against currencies of Moldova’s key trade partners.

The monthly core inflation made up 0,1% in June, 2012 and remained unchanged as compared with the previous month. In particular, prices grew for cigarettes, garments, knitted wear, auto spares, bicycles and educational services. In June prices for foodstuff declined 0.7% as compared with May. In particular, prices decreased 23% for potatoes, 1.9% for milk and dairy, 0.5% for rice and 0.4% for fresh vegetables. This decrease was in part smoothed by the rise in prices for eggs by 23%, fresh fruit for 1.5% and sugar by 0.8%.

In June, 2012 prices for fuel of all kinds decreased by 2.5%. In particular, the price for combustibles declined 2.3% due to the decrease in the prices in international markets. Prices for liquefied gas, coal and firewood decreased 5%, 2.1% and 1.4% respectively. Administrative prices grew 0.4% in June, mostly due to the growth in fees for power. Besides, Moldova saw the growth in prices for international railway and passenger air transportation by 2.1% and 1.8% respectively.

The National Banks states it will continued strictly controlling the dynamics of the national economy and monitoring the international economic environment in order to ensure the goal of the mid-term monetary policy, namely to achieve and maintain the price stability by adequate using monetary policy instruments.