The National Bank of Moldova reviewed down the inflation rate for 2016. This is forecast to be 7%, as opposed to 10.1% anticipated in February, IPN reports.
National Bank governor Sergiu Cioclea told a news conference that the reduction in the inflation rate is due to the diminution of the contribution of all the inflation components. It is about the decline in internal consumption amid the economic recession and the reduction in the regulated prices of gas and electric power. The food products at international level also decreased, influencing the prices on the domestic market. Also, the weather conditions for agriculture are rather good.
It is for the second time this year that the central bank revises the rate of inflation down. In February, the inflation was decreased to 10.1% from the level of 11.9% forecast last November.
For 2017, the National Bank of Moldova forecast a rate of inflation of 4.8%, 1.8 times down compared with the previous forecast. Thus, next year the inflation rate is expected to be lower than the central bank’s inflation target of 5%.
Sergiu Cioclea said the inflation forecast implies a number of risks. These will be determined by the evolution of the economic situation in the region and in the European states, which are the main trade partners of Moldova. It’s not excluded that the prices of food products will grow following the possible worsening of the weather conditions. Some of the regulated prices could also increase.
