Evolution of inflation rate in July confirms forecast of National Bank of Moldova

Chisinau, 12 August /MOLDPRES/- The National Bank of Moldova (BNM) announces that the annual inflation rate of 7.3 per cent recorded in July is “in line with the latest forecast if BNM”. According to the central bank, the dynamics of inflation in July 2017 was determined by the disinflationary effect of the seasonal factor typical of this period. At the same time, the impact of higher than expected growth in some sectors has been mitigated by the appreciation of the domestic currency, fall in oil and fuel prices on domestic market, the BNM notes in a press release on Friday.

According to data by the National Bank, the annual growth rate of food prices was estimated at 8.9 per cent, fuel – 5.9 per cent, and products and services – 7.4 per cent.

The National Statistics Bureau (BNS) announces deflation of 0.9 per cent in July, after the consumer price index dropped by 0.4 per cent in June against the previous month. The decrease in the average consumer prices by 0.9 per cent in July 2017 against June was determined by decrease in food prices by 2.3 per cent and non-food goods by 0.2 per cent.

Official statistics also show that the annual rate is maintained the second month in a row at 7.3 per cent.

The annual inflation rate will continue to record a high level in the third quarter of 2017, and then will quickly fall to ± 1.5 percentage points from the 5-per cent-inflation target. The average annual value will reach 7.4 per cent in the third quarter of 2017, and the 3.5 per cent minimum will be recorded in the fourth quarter of 2018 and first one of 2019, National Bank Governor Sergiu Cioclea said when presenting the report on inflation on 3 August.

BNM revised downward forecast on inflation rate at 6.5 per cent for 2017 against 6.8 as expected in May, and respectively, 4.4 per cent in 2018 compared to 5.1 per cent as earlier expected.

(Reporter V. Bercu, editor L. Alcază)