Moldovan central bank's governor says inflation rate to increase till fourth quarter of 2017, then to drop

Chisinau, 04 May /MOLDPRES/ – The annual inflation rate will have an upward trajectory until the fourth quarter of 2017, after which it will diminish and reach the minimum value of 4.1 per cent in the last quarter of 2018, the National Bank of Moldova (BNM) governor Sergiu Cioclea said in the presentation of the inflation report today.

According to the cited source, the annual inflation rate will be above the fluctuation band ± 1.5 percentage points from the inflation target of 5 per cent and will reach the maximum of 8.1 per cent in the fourth quarter of 2017.

The BNM governor specified that an average inflation rate of 6.8 per cent in 2017 and 5.1 per cent in 2018 is projected. The National Bank of Moldova revised the annual inflation forecast by 1.6 points for 2017 and by 0.2 percentage points for 2018.

The food products prices will increase by 7.3 per cent in 2017 and by 5.7 per cent in 2018. The average annual price of regulated prices will be 5.6 and 1.6 per cent 2017 and 2018, accordingly. The central bank expects an increase in fuel prices by 10.3 per cent in 2017.

The forecasts regarding the evolution of the economies of the main trade partners and destinations of Moldovan citizens’ working emigration indicate that external demand will increase. The international quotations on raw materials, but especially on food products, are going up, which will be reflected in the evolution of consumer prices through imports of goods, according to the BNM governor.

(Reporter V. Bercu, editor M. Jantovan)