Forecasts by National Bank of Moldova come true as to further slow increase in annual inflation rate

Chisinau, 10 April /MOLDPRES/ – The annual inflation rate rose to 2.8 per cent in March from 2.4 per cent in February and confirms the forecasts of the National Bank of Moldova (BNM), which expects the consumer price index to rise at the end of 2019.

The National Bureau of Statistics (BNS) informs today that annual food inflation was 3.8 per cent in March compared to the same period of the previous year, 3.7 per cent for non – food goods and 0 per cent for services rendered to population, 1 per cent.

Also, the consumer price index rose in March by 0.5 per cent compared to February. The increase in average consumer prices was due to the increase of prices of foodstuffs by 0.8 per cent, of non – food goods – by 0.2 per cent and of services rendered to the population – by 0.1 per cent.

The BNM has appreciated in the Inflation Report, launched in February 2019, that the annual inflation rate will increase by the end of 2019, after which its trajectory will reverse and inflation will go down to the end of the forecast horizon. In the first quarter of 2019, the inflation rate will be below the target range of 5 per cent +/– 1.5 percentage points, but it will go up over the range at the end of 2019 and early 2020, registering a maximum of 7.4 per cent at the end of 2019.

The annual growth rate of food prices will increase by the end of 2019, after which it will decrease over 2020. The annual growth rate of regulated prices will increase with the exception of the fourth quarter of 2020. The annual growth rate of fuel prices will have a downward trajectory by the end of 2019, after which it will increase marginally in early 2020 and maintain a relatively constant trajectory towards the end of forecast horizon, also states the Inflation Report.

The BNM forecasts an annual inflation rate of 4.9 per cent for 2019 and 5.0 per cent in 2020, respectively.