The consumer price index is a rough indicator that shows the trends in an economy. The rise in the incomes of the population will change the attitude to consumer prices, said experts who took part in the online debate “60 minutes of economic realism” staged by the Institute for Development and Social Initiatives “Viitorul” and Radio Free Europe, IPN reports.
Analysts Corina Gaibu and Mariana Gurghis, together with the program’s moderator Vlad Bercu, discussed the evolution of consumer prices and their impact on the financial state of households. “This approximate indicator will not show the concrete impact on your family if, for example, the consumer price index rose to 15%. It does not necessarily mean that a family will pay for goods and services by 15% more than earlier. It depends on where we purchase these goods and services from and on the incomes of this family,” stated Mariana Ghurghis.
The participants in the debate referred to the rise in the consumer price index witnessed in Moldova last year and the first months of 2016. According to them, the index rose following the increase in food and nonfood prices, the depreciation of the national currency against the dollar and the euro and the rise in the interest rates on loans.
The experts said the National Bank reduced the base rate and the interest on loans could decrease. But the banks do not hurry to release loans, while the business entities do not hurry to take out loans. Stability is needed in both of the cases. “The attitude to consumer prices depends on the incomes of families. If the incomes are higher, the attitude to prices and the perception are different. So, it is simpler for the Government to insistently promote policies that will contribute to the rise in the population’s incomes than to control the consumer prices,” said Corina Gaibu.
The consumer price index is a weighted average of current prices for 20 basic goods and services. It is used to calculate inflation.
