Price inflation in July and August exceeded the estimates calculated in the previous forecast, due to the change in global oil trends, as well as to the early manifestation of the drought’s effects on food prices, reports Info-Prim Neo, quoting a communiqué from the National Bank of Moldova. The inflation rate for August was of 4.4%, rising by 0.4% relative to July 2012. In the next period, the balance of inflation risks will be influenced by both foreign, as well as home factors. According to the NBM, increased volatilities of petrol and food item prices on international markets are the main foreign sources of inflation risks. Deflation pressure will come from reduced local economic activity. The increase of the inflation rate in August was mostly attenuated by the seasonal negative effect, typical to this period. After the elimination of the seasonal factor, there was registered an increase of 0.7% in prices, mainly caused by food price increases. Prices to food products, within the reference month, have increased by 0.5% relative to the previous month. This movement happened, mostly, due to the price increases on eggs, meat, processed and canned meat, milk and dairy, fish and canned fish, partially attenuated by the decrease in fresh vegetable and fruit prices. Most product prices have been predominantly influenced by the bad weather conditions during the summer, as well as by the drought. In August 2012, fuel prices marked a positive growth, increasing by 0.9%, relative to the previous month, as a result of increasing prices on fuels, firewood and bottled gas. Coal prices kept their values from the previous month.