The general level of prices in the first half of this year has grown slowly owing to the increased contribution of food prices. But the slowdown in inflation in the second half will be more pronounced, says the new report on inflation presented by the National Bank of Moldova on April 5.

Thus, the updated forecast of the central bank places the average annual inflation rate at 5.2%, down 0.2% on the previous forecast presented in January. In 2015 the inflation rate is projected at 4.3%, a decrease of 0.5% on the previous forecast.

“In the second quarter of this year, the inflation rate will remain almost unchanged. In the first quarter it was 5.4% or by 0.3% lower than projected. The food prices will make a 50% contribution to the total rise in consumer prices. But, from the third quarter of this year, the inflation will go down to the lowest variation interval set by the National Bank, of plus-minus 1.5% from the target inflation of 5%,” said the central bank’s governor Dorin Dragutanu.

He underlined the main disinflation risks, saying they are related to the significant decline in the economic activity of the main commercial partners of Moldova, especially Ukraine, diminution in the international prices of food prices and fuel, and toughening up of the migration and trade conditions with Russia.

Dorin Dragutanu also said that the central bank’s goal is to ensure and maintain the stability of prices, the exchange rate of the national currency being formed by the market supply and demand.

The annual average inflation in 2013 was 4.6%.