Moldova’s inflation hits 29% y/y in May

Moldova’s inflation hits 29% y/y in May
By bne IntelliNews June 12, 2022

Consumer prices in Moldova surged by 29% y/y on average in May, as the natural gas price more than tripled and the food prices soared by 32.5% y/y, according to the statistics bureau BNS.

CORE inflation, meaning the rise of the prices other than those of food, fuels and the administered prices, rose by 17.2% y/y. Regulated prices rose by 44% y/y, fuel prices by 53% and food and beverages were 32.5% more expensive compared to May 2021.

In May alone, compared to April, consumer prices on average increased by just over 2% m/m.

The most visible development was the 4.7% m/m rise in the prices of car fuels.

In June, the end-user electricity prices will rise by between 14% (central and southern part of the country) and 22% in the northern part of the country, keeping the inflationary pressures high.

In fact, the central bank, National Bank of Moldova (BNM), while raising the policy rate to 18.5% in early June, explained that “deferred adjustments in the energy prices” will result in prolonged inflationary shock. The magnitude of the price adjustments will also exceed previous projections — consistent with peak inflation of 31% towards the end of the summer.