Industrial inflation exceeds 25% y/y in Moldova

Industrial inflation exceeds 25% y/y in Moldova
By bne IntelliNews May 20, 2022

Industrial, or factory-gate, prices in Moldova increased by 5.2% in April, compared to March, pushing up the industrial price inflation to 25.3% y/y, the statistics bureau BNS announced.

Prices of intermediary goods sold on the local market soared by 11% m/m in April, creating expectations for a further advance in the overall industrial production index.

The consumer price inflation already exceeded 27% in Moldova and further electricity price hikes are expected. A one-month contract with the power plant in the separatist Transnistria region allowed the authorities to defer this at a time when inflation has already hit households’ budgets.

Households are charged for natural gas a price that does not reflect the (higher) import price, but further hikes in this regard are not imminent since consumption is low and the import price is expected to decrease during the wintertime.

The industrial price inflation in April was the second-highest since last November when Gazprom began charging much higher prices under a new contract and Moldovagaz had to hike the prices for both residential and industrial consumers.

The price of electricity and natural gas paid by Moldovan companies has more than doubled y/y (+113%), expressed in local currency, but increased by only 2.5% in April compared to March.

The prices of non-durable consumer goods sold on the local market, in contrast, surged by 7.9% m/m in April.