Natalia Gavrilița explains why inflation has exploded

Prime Minister Natalia Gavrilița claims that prices in the Republic of Moldova are rising because “we have a certain type of consumption and we have limited resources. We consume products whose prices have risen.” These are food and energy products.

“If we take the consumption of an average family, 45% of income is directed to food. Or, when I spoke for example with the delegation of some representatives of the US Congress, they said that in the US they do not include food products in the inflation index, because the prices are too volatile and anyway the US has over 8% inflation. Which has not been seen for 50 years “, Gavrilița declared during the show “In Profunzime “.

The Prime Minister announced that the authorities are currently working on various strategies that will help introduce short-term reforms for the benefit of the citizens in order to overcome the difficulties.

Data for May show that inflation in reached 29.05%. The NBM aims to bring inflation up, minus 1.5% from the 5% inflation target in the medium term.

Inflation is rampant worldwide. This is due to rising prices for raw materials, food and energy along with disruption to supply chains. In this regard, the central banks have revised upwards their inflation expectations for the coming quarters and in response have maintained an anti-inflationary monetary policy.

The regional and international context unbalances the domestic economic situation and puts inflationary pressures on the import channel. Moldova is more dependent on international markets, which makes it more vulnerable.

The governor, Octavian Armașu, stated that the highest level of inflation will be reached in September or October and could exceed the level of 35%.

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