OREANDA-NEWS. August 19, 2013. It is close to the predicted inflation rate of 5%. According to the report of the National Bank of Moldova, the monthly inflation rate in July fell by 1% due to the seasonal decline in food prices by 2.8% and rich harvest of fruits and vegetables.

At the same time, the prices of non-food products grew by 0.1%, while prices for services rendered to population have not changed. The NBM emphasizes that in July the annual inflation over the past 12 months made 4.4%, remaining at the previous month level, despite the recent devaluation of leu vs. dollar and euro, which indicates the absence of the inflationary pressure. In July 2013 monthly inflation rate was 0.2%.

This evolution was due mainly to the increase in prices for clothes, building materials and textiles. Excluding seasonal factor, the inflation rate in July grew by 0.4% compared with June 2013. Food prices in July fell by 2.8%. The decrease was stipulated by the decrease in the price of potatoes - by 33.2%, fresh vegetables - by 23.3% and fresh fruits - by 5.9%. It was partially balanced by the higher prices for eggs - by 3.8%, alcoholic beverages - by 0.7%, sugar - by 0.3%, fish and canned fish and flour milling as well as bakery products - by 0.2%.

The annual rate of increase in food prices in July was 5.9%, 3.3 percentage points down as compared to the previous month. Decline in prices for fruits and vegetables was due to favorable weather conditions, which led to the increase in the market demand. Excluding the seasonal factor, food prices fell by 1.3%. According to the National Bank, in July 2013 the price of fuel decreased by 0.3% compared with the previous month, as a result of reducing the cost of liquefied gas in cylinders and coal by 1.2% and 0.9%, respectively. Prices for fuel and firewood have remained at the previous month level.

The annual rate of increase in fuel prices in July was 6.3%, down 0.1 percentage points in comparison with the previous month. Regulated prices in July increased by 0.1% compared to the previous month, mainly due to the increase in tariffs on medicines and transport services by 0.2%. The annual rate of growth of regulated prices in July was 1.8%, remaining at the previous month level.

The National Bank of Moldova intends to continue monitoring the dynamics of the economy in the country in order to ensure implementation of goals outlined in the Mid-Term Monetary Policy Strategy to maintain price stability.