OREANDA-NEWS. April 17, 2013. At that, it enters the target value limits of 5% inflation the 14th month in row. According to the NB, the inflation’s balance of risks is affected by both internal and external factors with the stress on the deflationary factors.

The deflationary pressure is caused by decrease of internal/external demand, market prices for oil and foods, icluding the change of the internal food prices. The proinflationary risks took place due to the correcting fiscal policy 2013. Meanwhile the NBM notices that the risks are balances, and the deflationary will prevail in the near quarters.

The NBM aslo mentiones that in March the annual core base for the last 12 months made 4%, 0.1 p.p. up as compared with the previous month. This dynamics is explained by growth in prices for education services, cigarettes, clothes, detergents, and building materials. As the month before, the core inflation was slightly influenced by the seasonal factor. In March, prices for foods lowered 0.1% as compared with the previous month. The slow price development for supplies was defined by the deflationary pressure’s active demand, as well by the price decrease tendency in the foods world markets.

In March, as compared with February, prices for fuel increased 0.2%, being formed by increase in the price for gasoline by 0.7%. At the same time, prices for firewood and bottled gas did not change, prices for coal lowered 0.3%. In March regulated prices increased 0.1% as compared with February due to the 0.3% growth in medicine prices and healthcare services.

The National Bank states that 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.