Annual rate of inflation in November was lower than a month ago

The annual rate of inflation last month was 0.9%, by 0.3 percentage points lower than in October. Similarly, during the past six months it has been below the lower limit of the variation interval of ±1.5 percentage points from the inflation target of 5.0%. The figures for October and November are lower than the anticipated ones owing to the lower than expected rise in food prices, IPN reports.

According to the National Bank of Moldova, food prices and the basic inflation contributed by 0.8 percentage points to the annual rate of inflation. In November, food prices rose by 0.8% compared with the previous month following the increase in the prices of eggs (+6.0%), fresh vegetables (+5.7%), potatoes (+2.7%), milk and milk products (+1.2%) and fats (+0.6%). The evolution of food prices was offset by the decline in the prices of fresh fruit (-1.1%) and sugar (-0.9%). Excluding the seasonal factor, the food prices diminished by 0.1% on October.

Fuel prices had an impact of 0.4 percentage points, influenced mainly by the 2.2% rise in the prices of bottled gas. The prices of coal and firewood rose by 1.3% and 0.2%, respectively, owing to the start of the cold season. The prices of liquid fuels remained at the level of October.

The regulated prices generated a negative contribution of – 1.1 percentage points after declining by 0.1% on October, influenced mainly by the 0.3% decline in the prices of medicines. The railway transport services grew by 3.2% in price, while air transport services fell by 2.2% in price.

The evolution of the basic inflation was mainly influenced by the rise in charges for crèches and kindergartens, in cigarette prices and in the prices of tourism services.