OREANDA-NEWS. February 19, 2013. It fitted within the target inflation rate of 5% ±1.5% the 12th month in a row, NBM informs. January’s inflation was determined by activation of pressures on the side of food prices. January’s inflation evolution confirms the last inflation forecast and meets expectations published in the Inflation report in February.

The monthly inflation increased 0.8% in September, which was explained by 1.6% higher prices for foodstuff, 0.4% higher prices for nonfoods and 0.3% higher tariffs for services for population. As before, the inflation increase in January was reinforced by a seasonal factor, in particular, a growth in prices for vegetables and cloths. Besides, the increased was caused by cumulative revaluation of the nominal effective exchange rate of MDL against foreign currency by 1.5% in December, 2012 and January, 2013 against November, 2012.

The seasonal factor excluded, Moldova saw the slight increased in prices in January, by 0.4%. This dynamics was chiefly contributed in by food prices and the core inflation. The impact of regulated prices was insignificant. Not being pressed by the demand, the core inflation increased slightly, as before. The annual core inflation made up 3.7% in January, 0.2 p. up as compared with the previous month, NBM informs.

In January, 2013 the monthly core inflation made up 0.5% within last 12 months, 0.2 p.p. up as compared with the previous month. In particular, prices increased for catering services, cigarettes, knitted textile, detergents, education, cloths and foot wear. The prices for closing and foot wear were influences, among others, by an increase in their prime cost due to higher global prices for power and inputs. Besides, the core inflation was impacted by a seasonal factor, typical for this period.

In January prices for foodstuff grew 1.6% as compared with December. In particular, prices increased 10.3% for fresh vegetables, 4.8% for potatoes; 1.8% for fish and canned fish: 1.1% for milk and dairy products, 0.6% for bakery goods. The increase in the prices for abovementioned products was determined by fallouts of the summer drought of 2012. The seasonal factor excluded, the food prices grew 0.5% in January.

In January 9% fuel went 0.4% up due to the 1.9% higher price for bottled gas. At the same time, prices for combustibles, firewood and coal did not change. Administrated prices changed slightly in January, growing up by 0.2% as compared with December due to 1.3% higher prices for healthcare services and 1.9% higher tariffs for water supply and sewerage in some settlements. The 0.3% increase in medicine prices positively, but to a less degree, contributed in the dynamics of administrated prices.

Their annual pace of growth was 2.5% in January, which was 0.1 p.p. down as compared with December. The National Banks states it will continue 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.