Experts recommend maintaining price regulation conditions

During the period 2007-2008, food prices rose by 28.3%. Mostly it was basic foods that grew in price, which represent a significant party of the consumer expenses of the poorest groups of the population. At the same time, prices rose significantly for drugs (by 33.5%), fuels (by 34.7%), utility bills (49.9%) and passenger transportation (by 29.8%). At the start of 2009, the pace of the rise in consumer prices slowed down, as a result of the deepening economic crisis and lower levels of consumer demand, shows the study “Impact of Prices on General Welfare from Statistical Perspective”, published Wednesday, January 27, Info-Prim Neo reports. The study, compiled on the proposal of the Ministry of Economy, assesses the impact of changes in consumer prices on different groups of population, including vulnerable categories, by using official statistics. It was compiled by the Center for Strategic Survey and Reform, with the support of the joint UNDP, UNIFEM, UNFPA and UNICEF project “Strengthening the National Statistic System of the Republic of Moldova”. The study aimed at determining the interdependence between the price developments for various products and the changes in consumption behaviors of people with different incomes. It also aimed at formulating recommendations on how to improve price statistics and, what's more important, at formulating public policies on consumer prices and general welfare. According to the study, in the pre-crisis period (until 2008), available incomes of the population were growing at a faster pace than the consumer prices, which led to higher consumption levels. For example, at an average rise in prices of 12.7% in 2008, available incomes grew by 16.7%. One of the recommendations of the study is to keep the same price regulating conditions. “Considering the high levels of poverty in the country, such regulation procedures for consumer prices is a necessary and important instrument of economic and social policies”, the study says. “We supported the compilation of this study in hope that the analytical interpretation of statistical data will make them easier to understand by the users of statistical information, like the nongovernmental organizations and the civil society”, says Aurelia Spataru, the manager of the joint project. “With this component, the project, in conformity with its objectives, is supporting its national partner, the National Bureau of Statistics, in disseminating statistical information, and at the same time provides relevant ministries with analytical studies to be further used in devising, monitoring and assessing policies. In this way, we also contribute to strengthening the capacities of the users in making the best use of such official statistic information. We hope that the implementation of the results and conclusions of this study in practice will help to improve policies and regulation mechanisms in pricing and charging matters. Also, this could facilitate a more reasoned, selective and effective decision-making in the protection of different groups of population from the unfavorable effects of consumer price changes”, said Aurelia Spataru.