OREANDA-NEWS. April 15, 2010. As it is noted in the report of the National Bank of Moldova, thus, the annual inflation in March has exceeded the upper limit of the scheduled interval, which in late 2010 was planned at a rate of 5% +/-1 percentage point.

It was mainly due to such factors as: the increase in food prices, products and services with regulated prices, more tangible increase in the world oil prices that affected the evolution of the national currency at the currency market. As NBM notes, nevertheless, core inflation is within the stated goal at the end of this year, and the inflationary process is mainly affected by the non-monetary factors. Monthly inflation in March was lower than that registered in January and February, 2010.

The harsh climatic conditions and dynamics in the food prices in the region led to the increase in the average food prices in the country. For example, food prices over the past 12 months increased by 7%. The significant increase in prices was registered for sugar (64.9%), fresh fruits and vegetables (47% and 15.1%, respectively).

After the increase in electricity tariffs (21,5%) and central heating (13%) because of the higher prices for the imported natural gas and oil prices at the world market, prices for goods and services have grown over the same period of the last year by 11,1%. The most significant price increase was registered for water supply and sanitation (21,5%) as well as passenger transport (by 9,6%). Increase in the fuel prices (22.9%) over the past 12 months is due to the increase in the world oil prices by 70%, the excise taxes for fuel and weakening of the national currency compared with the previous year.

As NBM noted, core inflation (partial index of inflation) over the past 12 months, calculated by NBS by the exception of prices for food and beverages, fuel, goods and services with regulated prices, which can not be under the direct influence of the monetary policy measures of NBM, amounted to 6% in March. The growth in the core inflation was largely due to a substantial depreciation of the national currency since the beginning of this year, and negative effects from the growth of tariffs for services at regulated prices.

NBM experts emphasize that the inflation’s evolution was substantially affected by the growth of prices for goods and regulated services, food products and petroleum products at the world markets, alongside with trends at the currency market and the increase in indirect taxes. The NBM notes that the current changing trends at the currency market confirms the previously published expectations of the National Bank, which will lead to softening of the inflationary pressure and will help to minimize the impact of the non-monetary factors in the medium term.

The National Bank of Moldova stated that it will continue to closely monitor the evolution of the national economy and trends in the international economic environment, and if necessary, will use monetary policy instruments to ensure implementation of the scheduled objectives, thus contributing to macroeconomic and financial stability.