{"id":260359,"date":"2009-06-09T11:15:02","date_gmt":"2009-06-09T11:15:02","guid":{"rendered":"http:\/\/new.moldova.org\/2009\/06\/09\/inflation-unlikely-to-give-headaches-in-moldova-201280-eng\/"},"modified":"2009-06-09T11:15:02","modified_gmt":"2009-06-09T11:15:02","slug":"inflation-unlikely-to-give-headaches-in-moldova-201280-eng","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/inflation-unlikely-to-give-headaches-in-moldova-201280-eng\/","title":{"rendered":"Inflation unlikely to give headaches in Moldova"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Inflation in Moldova was 0.3 percent in April, and a deflation of 1.7 percent was recorded since the beginning of 2009. In particular, prices of food products and manufactured goods have increased by 0.3 percent each, while tariffs for public services have grown by 0.1 percent.<\/p>\n

The deflation reveals in fact the plans of some economic agents (which reduced prices) to maintain or the least to slow down the reduction, sometimes important in a short period, of sales in crisis conditions. The fall of consumption fuelled by decline in population income (reduction of remittances, wages and other revenues, inclusively from investments, undesired vacations or even dismissal of employees) and enterprises, the use of savings, as well as reduction of people’s and business capacity to get credits generate and sometime encourage the inflation.<\/p>\n

Unquestionably, the deflation is favourable for all consumers in Moldova, especially for those earning little. As well, it advantages the state as consumer when it purchases food products and manufactured goods for orphanages, kindergartens, elderly asylums, army etc. The further fall of prices will make consumer happier. But the satisfaction of falling prices has a short term, while on a long term it could turn into dissatisfaction, as in conditions of a long deflation enterprises reduce\/stop their production or even become insolvent and\/or shut up.<\/p>\n

This fact amplified by reduction of people’s incomes in Moldova reduces incomes to the national public budget (state, social insurance and health insurance) and wages of population. Even more, about 70 percent of the state budget incomes for the 2007–2008 years were made of customs fees. Imports have dropped by about 33 percent in the 1st quarter of 2009, as well as customs fees. In consequence, all have suffered: employees in private and public sectors, retirees, invalids, students and even enterprises which provide the state with goods\/works\/services. Public investments in roads, current and capital repairs, constructions, equipment etc. are on the decline or even cease.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>Inflation in Moldova was 0.3 percent in April, and a deflation of 1.7 percent was recorded since the beginning of 2009. In particular, prices of food products and manufactured goods have increased by 0.3 percent each, while tariffs for public services have grown by 0.1 percent.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-260359","post","type-post","status-publish","format-standard","hentry","category-economy"],"content_social_share":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Inflation in Moldova was 0.3 percent in April, and a deflation of 1.7 percent was recorded since the beginning of 2009. In particular, prices of food products and manufactured goods have increased by 0.3 percent each, while tariffs for public services have grown by 0.1 percent.<\/p>\n

The deflation reveals in fact the plans of some economic agents (which reduced prices) to maintain or the least to slow down the reduction, sometimes important in a short period, of sales in crisis conditions. The fall of consumption fuelled by decline in population income (reduction of remittances, wages and other revenues, inclusively from investments, undesired vacations or even dismissal of employees) and enterprises, the use of savings, as well as reduction of people’s and business capacity to get credits generate and sometime encourage the inflation.<\/p>\n

Unquestionably, the deflation is favourable for all consumers in Moldova, especially for those earning little. As well, it advantages the state as consumer when it purchases food products and manufactured goods for orphanages, kindergartens, elderly asylums, army etc. The further fall of prices will make consumer happier. But the satisfaction of falling prices has a short term, while on a long term it could turn into dissatisfaction, as in conditions of a long deflation enterprises reduce\/stop their production or even become insolvent and\/or shut up.<\/p>\n

This fact amplified by reduction of people’s incomes in Moldova reduces incomes to the national public budget (state, social insurance and health insurance) and wages of population. Even more, about 70 percent of the state budget incomes for the 2007–2008 years were made of customs fees. Imports have dropped by about 33 percent in the 1st quarter of 2009, as well as customs fees. In consequence, all have suffered: employees in private and public sectors, retirees, invalids, students and even enterprises which provide the state with goods\/works\/services. Public investments in roads, current and capital repairs, constructions, equipment etc. are on the decline or even cease.
\n <\/p>\n

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