Inflation in Moldova in the next 2 years will remain at the level of 5% ±1.5 p.p., which is considered safe for the country’s economy - Anca Dragu
This was announced by the Governor of the National Bank of Moldova during the regular edition of the new series of podcasts “Give Sense to Money”, which are organized at the initiative of the NBM with the support of the USAID program “Moldova Institutional and Structural Reforms Activity” to provide citizens with more detailed information on financial and economic topics. The podcast was dedicated to inflation issues. Anca Dragu reminded that the National Bank of Moldova (NBM) recently presented the 4th Inflation Report of the year. In this last quarterly report, the NBM stated that we have been within the annual inflation target for 12 consecutive months, and this has not happened for 8 years. “We can say that in terms of price growth, inflation rate, Moldova is in the safe zone. Inflation where it also provides the possibility of investment, it does not eat up incomes, because inflation, in short, should be neither too high nor too high. Inflation is a kind of salt in a dish; let it not be too much, because if we put a lot of salt, we will get hypertension. It is the same with inflation,” the NBM Governor said. She emphasized that it is important for citizens to know about inflation, because it affects our daily life. “If inflation is high, that is, if prices are rising at an accelerated rate every month by 10-20%, it means that our purchasing power, our standard of living, and our purchasing power are falling a lot. We have the same money, but everything we buy costs more. Also, if inflation is too low, it especially affects companies. They cannot sell,” Anca Dragu said. According to her, for the next 8 quarters, the NBM is forecasting in the range of 5% ±1.5 percentage points. “And, of course, there are risks. In general, there are external risks related to geopolitics, military conflicts, the war in Ukraine, the conflict in the Middle East, but there are also aspects directly related to the economy, how the economy is doing in the core countries, in the countries that are our main trading partners. If the economic growth there is very low, closer to zero or, God forbid, even negative, it is clear that this will affect our exports to these countries. Of course, we are very dependent on world gas prices and agricultural production. This year we saw some negative impact on prices and inflation due to the drought. Agricultural prices went up and affected all of us. Hopefully 2025 will not bring any more shocks and question marks regarding agricultural production. There are many factors that we are monitoring. In the next 2 years, inflation will remain at a level that we consider safe for the Moldovan economy,” Anca Dragu emphasized. //25.11.2024 - InfoMarket.
