The National Bank of Moldova (BNM) revised down the inflation forecast for 2013. The updated forecast puts the annual inflation rate at 3.8% at yearend, down 0.3% on the previous forecast.

BNM governor Dorin Dragutanu explained the necessity of reviewing the forecast by the smaller than expected impact of the weather conditions on the prices of national food products.
 
“We can say that not inflation is a problem for the economic activity, but the economic activity for inflation as this activity is reduced. The demand on the market is also reduced because the people have less money, the companies do not invest in the development of businesses and no foreign direct investments come,” said the governor.

Given the stimulatory monetary policy, the internal demand in the second half of this year and in 2014 is projected to rise. For 2015, the BNM forecast an inflation rate of close to 5%.