OREANDA-NEWS. May 07, 2014. During a press conference, which presented the second this year Inflation Report, the NBM President Dorin Dragutanu reported that the updated forecast includes the decline in the inflation in 2014 by 0.2 percentage points compared to the previously projected figure - up to 5.2% and in 2015 - by 0.5 percentage points - up to 4.3 %.

According to Dragutanu, inflation forecast it is based on the slowing economic growth in the euro zone (up to 1 % in 2014 and 1.4% - in 2015), as well as in Russia (up to 0.6 % - in 2014 and 2% - in 2015). It is also expected that the world prices for oil and gas, as well as for food products will decline, and the European currency will depreciate vs. U.S. dollar.

Dorin Dragutanu noted that the forecast takes into account the National Bank of Moldova's GDP growth slowdown and deflationary pressure from the domestic demand. According to him, in 2014 regulated tariffs will have a little impact on the inflation pressure. Average annual inflation in Moldova in the next 8 quarters remain within a range of ± 1,5%.

Dragutanu noted that the coming period will differ uncertain and volatile economic environment at the regional and global levels, with a predominance of significant deflationary risks.

Basic deflationary risks are associated with substantial economic slowdown in the trading partners of Moldova; decline in the world prices for foodstuffs and petroleum products; possible deterioration of trade and migration conditions in Russia, as well as the uncertainty of situation in the Ukraine.