OREANDA-NEWS. May 20, 2013. It fitted within the target inflation rate of 5% the 15th month in a row, NBM informs. The balance of inflationary risks during the next period will remain be influenced by external and internal factors with a slight pronunciation of deflationary factors, the press release of the National Bank of Moldova runs.

Deflationary factors root in a weak economic activity and a decline in global food prices amidst favourable weather conditions for the harvest of 2013 and a considerable decrease in oil prices. According to NBM, April’s trend of inflation met the inflation expectations given in the recent Inflation Review in May, 2013. The monthly inflation was 0.4%, being determined by the lack of the demand aggregate pressure.

In particular, prices for foodstuff went 0.7% up, prices for nonfoods increased 0.2%; tariffs for services rendered to the public grew 0.3%. The annual inflation rate was mostly determined by aftermath of the summer drought of 2012 and higher fuel prices in February, 2013. Deflationary pressures were, in part, mitigated by a slight decline in MDL/USD exchange rate, registered this year. The annual core inflation made up 3.9% in April, 0.1 p.p. down as compared with the previous month, NBM informs.

The monthly core inflation made up 0.3%, staying unchanged as compared with the previous month. In particular, prices increased for education, cigarettes, cloths, footwear and building materials. As the month before, the core inflation was slightly influenced by the seasonal factor. In April, prices for foods grew 0.7% as compared with March. The growth was formed mostly by 9.1% higher prices for potatoes, 4.8% higher prices for fresh vegetables, 2.9% higher prices for fresh fruit, 0.5% higher prices for alcohol and 0.4% higher prices for flour and bakery products.

This increase was in part smoothed by the decline in prices for eggs by 5.7%, milk and dairy products by 0.6% and rice by 0.5%. The increase in the above prices stems mostly in aftermath of the summer drought of 2012 and indirect consequences of the growth in fuel prices in February, 2013. The seasonal factor excluded, prices for foods increased 0.4%. In April prices for fuel changed very slightly as compared with the previous month. Regulated prices increased 0.3% as compared with March due to the 3.7% growth in transportation services, taxi services excepted.

Their annual pace of growth was 3.1% in April, which was 0.3 p.p. up as compared with March. 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.