The average rate of inflation in 2020 will be of 5.1% and in 2021 of 3.6%, according to the National Bank of Moldova’s forecasts that were presented in a news conference by governor Octavian Armaşu. According to him, the annual rate of the regulated prices will be relatively low. This will rise slightly in the first half of this year and will then decrease until the first quarter of 2021, IPN reports.

Octavian Armaşu said the rate of inflation in the first months of this year will be relatively high due to the main effects of the previous year and will gradually decline to 5.1%. The forecast from this report confirmed the previous rounds and proved the correctness of the decisions taken by the Executive Board of the National Bank of Moldova. The effects of the monetary policy measures adopted last December will become more evident at the next stages. The subsequent decisions will depend mainly on the macroeconomic situation and will be aimed at maintaining the inflation relatively low, stable and credible.

Octavian Armaşu also said that the relatively low and stable inflation this year will protect the population with fixed incomes and the socially deprived groups, will minimize the erosion of social payments and investment revenues. None of the components of the Consumer Price Index will have pro-inflationist evolution in 2020. The regulated prices will experience a temporary shock and the rise in fuel prices will be insignificant. The annual growth rate of food prices will decrease significantly until the start of next year and will then rise inessentially.

“We can today ascertain that the National Bank practically created monetary conditions for maintaining the interest rates at a relatively low level, stimulating consumption that, for its part, should create conditions for stimulating investment and economic activity,” said the governor, noting the other decision makers, political and economic players should first of all adjust their programs so as to restore economic growth.

According to the foreign hypotheses based on which the inflation forecast was made, petroleum prices in 2020 will rise by 7.7%, natural gas prices will decrease by 8%, while food prices will grow by 1% after increasing considerably in 2019.