OREANDA-NEWS. September 13, 2010. According to the National Bank of Moldova, the core annual inflation (over the last 12 months) amounted to 5,2% and is within the object limits set at the end of the year. This level of core inflation is kept six month running, proving the fact that the secondary effect of the growth of regulated prices and devaluation of Lei in January-June 2010 was completely absorbed.

The data on the evolution of index of consumer prices and core inflation completely coincide with the NBM’s projections, published on August 5, according to which the index of consumer prices at the end of this year will account for 8,2%, and the core inflation – 6,2%. In August the annual inflation, measured through the index of consumer prices over the last 12 months, accounted for 7,8%.

The deceleration of inflation growth and its entry in the predicted limits is caused mainly by the reduction of prices for food and nonfood by 2,6% and 0,1%, respectively, as well as by relatively stable tariffs for services, rendered to the population. The influence of core inflation, change of regulated prices and prices for fuel on the monthly inflation rate in this period was small. The core inflation was within the annual object, increasing over the last 12 months by 5,2%. The index of consumer prices over the last 12 months is by 2,6 pp more than the core inflation, indicative of heightened influence of nonmonetary factors on the inflationary process.

The monthly rate of core inflation continued the tendency for reduction, started in February 2010. In August 2010 the prices for goods and services in this section didn’t change against July. The prices for food continued the reduction, typical during the last months because of seasonal factors and favorable agro-meteorological conditions that allowed increasing the supply on the market. The reduction in price for vegetables, potato and fruit by 21,1%, 6,7% and 9,2%, respectively, contributed considerably to the reduction of prices for food.

In August 2010 the prices for fuel remained stable against July. In the given period the world prices for oil increased by 1% against July. This didn’t allow the operators to increase the internal prices for fuel due to strengthening of Lei versus US Dollar by 3,7% against July 2010. The NBM intends to continue to follow attentively the evolution of macroeconomic indexes, situation on monetary and foreign exchange markets, international economic tendencies.