OREANDA-NEWS. December 07, 2012. The inflationary process was determined by an adaptive character of the monetary policy of NBM and the dynamics of the exchange rate of national currency on the one hand and the evolution of oil prices and provision on global markets on the other one.

The inflationary pressure was compensated by lower rates of the growth of internal economic activity and weak external demand. The annual inflation rate for October 2012 reached 3.9%, 1 p.p. down as compared with the previous month, and changed the upward trajectory started in July 2012. The decline in inflationary rhythm was caused by the effect of the main period, marked by lower administrative prices and weaker affection of prices on foods thanks to whether conditions favourable for harvesting and selling vegetables.

The annual core inflation rate kept the same as in the previous months and made up 3.6% as a result of a decline in internal and external demand. According to the national bank of Moldova, the monetary policy remains being influenced by external vulnerable macro-economy explained by an economic situation in the European Union and its influence on local macroeconomic situations through the channel of the capital flow and trade.

Unbalanced mid-term inflation risks are determined by tensions in international markets and high volatility in foodstuffs prices. Risks of lower inflationary pressures may arise due to deepening recession in the area of euro worsening the inner economic progress and lowering the domestic consumption.