Increase of annual inflation rate tempers in Moldova in August 2019

Chisinau, 10 September /MOLDPRES/ - The increase in the consumer price index tempered in last August and the annual inflation rate registered a rise by 0.1 percentage points against July 2019. The National Statistics Bureau (BNS) today informed that the annual inflation rate in last August had grown to 5.5 per cent against 5.4 per cent in July, this year. In the first seven months of 2019, the annual inflation increased from 2.2 per cent in January to 5.4 per cent in July, according to the official statistics.    

The consumer prices grew by 0.03 per cent in August 2019 against the previous month and by four per cent against December 2018. The negative tendency of the evolution of the average consumer prices by 0.03 per cent was triggered by a 0.6- per cent decrease in the prices for food products, BNS said.  

Deflation has been registered in Moldova for the third month in a row.

The National Bank of Moldova (BNM) in last August revised downwards the forecast of the inflation rate for 2019 to five per cent against 5.1 per cent, which the central bank forecast in the inflation report No 2. The prospects for 2020 were increased from 6.5 to 6.7 per cent, according to the inflation report No 3.

BNM said that the annual inflation rate would grow till late 2019 and will reach the maximum level of eight per cent in the fourth quarter of this year, after which it will continuously decrease till the end of the forecast horizon, when it will drop to the minimal level of 3.9 per cent in the second quarter of 2021. The annual pace of increase in prices for food products will significantly enhance till the end of this year; subsequently, it will decrease by the end of the forecast horizon. The annual pace of increase of the regulated prices will sharply boost in the first two quarters of forecast and will slightly drop in the fourth quarter of 2020. Afterwards, it will maintain at a constant level. The annual pace of increase in prices for fuels will be relatively stable, fluctuating insignificantly at pretty low levels, the inflation report also reads.