OREANDA-NEWS. February 19, 2014. It was kept floating within the inflation mid-term target of 5%. The monthly inflation increased 0.8% due to the 1.4% growth in food prices, the 0.4% increase in nonfood ones and the 0.3% rise in tariffs for services to the population, the National bank informs.

The annual core inflation was 4.8% in January, staying the same month-on-month, which means the lack of the inflationary pressure on the part of the aggregate demand although the national currency weakened against currencies of Moldova’s major trade partners. In January, 2014 the monthly core inflation made up 0.6%, up 0.3 p.p. as compared with the previous month. The biggest rises were reported in prices for cigarettes, auto spares, bicycles, catering services, rent, furniture and detergents.

The seasonal factor excluded, the core inflation increased 0.5% in January. In January prices for foodstuff grew 1.4% as compared with December. The increase was formed by the raise in prices for fresh vegetables by 10%, for potatoes by 6.5%, for fresh fruit by 2.1%, for milk and dairy products by 1.6%, for soft beverages by 0.6%. The raises were partially smoothed by the falls in prices for sugar by 1.8% and for eggs by 1.1%. The annual pace of growth in food prices was 7.3% in January, 0.3 p.p. down month-on-month. The prices grew because of a poorer than expected yield of vegetables in 2013, the evolution of the national currency and a growth in global prices for dairy products.

 The seasonal factor excluded, prices for foods increased 0.4%. In January 2014 prices for fuel climbed 0.1% as compared with the previous month. The price for liquefied bottled gas increased 0.2%, the prices for coal and combustibles increased 0.1%. Operators of the fuel market explained the raise by an increase in excises and by devaluation of MDL against USD. The annual pace of growth in fuel prices was 3.1% in January, down 0.3 p.p. as compared with the previous month. Regulated prices increased 0.2% in January month-on-month, the increase formed by 0.7% higher price for medicines and the 2.9% higher hostel rent.

Their annual pace of growth was 2.8% in January, which was 0.2 p.p. down as compared with December. The NBM promises to be closely observing evolutions of the domestic economy and the international economic environment, including that of the demand, remittances and external trade so that to maintain the mid-term price stability through the use of instruments of monetary policies within the Inflation Targeting Strategy.