OREANDA-NEWS. November 20, 2012. Slowdown in economy and the weak domestic demand to be main deflationary factors within next quarters, - NBM.
The balance of inflationary risks during the next period will remain be influenced by external and internal factors with a pronunciation of inflationary factors, the press release of the National Bank of Moldova runs. Inflationary risks follow from uncertainty about a sustainable sovereign debt resolution in the euro area in the context of worsening outlook for global economic growth.

The oil prices on international markets remain volatile due to tensions persistent in the Middle East. The increase in food prices caused by the severe drought in the main agricultural regions will create additional inflationary pressures although the draught effects will dissipate in the following quarters.

In October, 2012 the Consumer Price Index was 3.9% for 12 months, 1 p.p. down as compared with the previous months, and the 9th month in a row did not exceed the limit of the inflation target of 5% ±1.5, NBM informs. The monthly inflation rate constituted 0.6 %.

The inflation trend in October justifies hypotheses used in the last round of the projection and confirms the forecast published in the Inflation review for November, 2012. Earlier National Bank of Moldova raised the inflation projection from 3.9% to 4.1% for 2012 and from 3.9% to 5.3% for 2013.