Experts Predict an Increase in Food Prices in Moldova

Average annual inflation may reach 4.6% this year, down from the originally forecast 4.7%, according to a report presented by the head of the National Bank of Moldova, Anca Dragu. Thus, average prices for agri-food products and tariffs will slightly increase until the first quarter of next year, while the annual rate of fuel prices will continue to slightly decrease, radiomoldova.md reports. Marin Gospodarenco, an expert of the Analytical Centre Economy, said for Teleradio-Moldova that the inflation rate we have now, which exceeds 5%, means that goods and services are becoming more expensive than before, which affects the purchasing power of the population. He also said that the actions of the National Bank of Moldova to facilitate the economic agentsэ access to cheaper loans will not have an immediate impact on inflation. “This situation affects the daily life of the citizen, especially at the level of food products. Food, unlike many other commodities, is strongly influenced by weather conditions and lack of rainfall, this affects the yield of our crops, which increases the cost of production and entails higher prices in markets and shops. These increases are directly felt by the consumer, especially for staples, which most households buy regularly. Thus, for households on fixed incomes, such as pensioners, minimum wage workers or those from low-income families, any increase in the price of food and staples reduces their purchasing power,” Gospodarenco said.