OREANDA-NEWS. June 17, 2013. It fitted within the target inflation rate of 5%. Inflation-to-balance-of-risks are influenced by the internal and external factors with prevailing deflationary factors. Deflationary pressure is causes by week economic activity, moderate oil prices growth, and foodstuff global process decrease due to favorable weather conditions for reaping in 2013.

According to NBM, the annual rate of inflation in April and May, 2013 turned to be slightly different than that projected in NBM's Inflation Report for May, 2013. In particular, in May, 2013 the average annual inflation was 1.2% thanks to favourable weather conditions which checked the long-term growth in food prices by 2.9% and non-food by 0.4%, while the tariffs for services to population remained the same. Deflationary pressure was relieved by national exchange rate decrease versus USD.

The basic inflation made 4.2% in May, 2013 over the last 12 months, 0.3 p.p. up versus April, 2013. The monthly share of basic inflation made 0.5%, 0.2 p.p. up. This evolution was influenced by prices growth for footwear, building materials, detergents, hosiery, and clothes. As in April so in May the seasonal factor didn’t affect the share of basic inflation. The food prices increased 2.9% versus April, 2013: potatoes by 51.6%, fresh fruits by 13%, fresh vegetables by 5.6%, eggs by 4.2%, fish and fish canned food by 2%, meat and meat products by 1.4%.

The prices for fuel decreased 0.1%, while the prices for gasoline and bottled gas didn’t change at all. The prices for firewood and coal decreased 0.2% and 0.1% respectively, by this slightly influencing the monthly evolution of fuel prices.

The contribution by regulated prices grew 0.1% and was explained by the increase in prices mostly for medicines by 0.6%. The annual core inflation made 2.2% in May, 0.9 p.p. down as compared with the previous month.

The National Bank will continue monitoring the economic dynamics in Moldova as well as in the World to use the monetary policy means reasonably and implement the goals from Middle-term Strategy for Monetary Policy to provide prices stability.