Statistics Bureau BNR reports that consumer price inflation in Moldova eased to 8.6% y/y in September from 9.7% y/y in August, after prices rose 0.5% m/m over the last month.
There was an increase in prices for food products by 8.2% y/y, among non-food items, oil products became more expensive – by 1.9%, including diesel fuel – by 5.5%, gasoline – by 2%. Of the tariffs and services, prices for education at universities increased the most in September – by 6.7%, passenger transportation – by 2.4%, water supply and sewerage – by 2.2%.
Prior to that, there had been three consecutive months of declines in consumer prices in June and August, and they were still on average slightly lower in September than in April.
In July-October last year, annual inflation in Moldova reached a high of 34 per cent y/y. However, tight monetary policy and demand factors – two factors not always independent – contributed to a sharp deflation in the first half of 2023.
This allowed the Central Bank in June this year to reduce the monetary policy rate to 6 per cent from 21.5 per cent, where it was in August-November last year. At this level, monetary policy no longer hinders economic growth, the Central Bank reported at the time.
The National Bank forecasts average annual inflation at 13.3% for 2023, and the World Bank at 14.1%.
