{"id":260432,"date":"2009-06-30T11:40:41","date_gmt":"2009-06-30T11:40:41","guid":{"rendered":"http:\/\/new.moldova.org\/2009\/06\/30\/moldova-inflation-is-not-a-problem-so-far-202056-eng\/"},"modified":"2009-06-30T11:40:41","modified_gmt":"2009-06-30T11:40:41","slug":"moldova-inflation-is-not-a-problem-so-far-202056-eng","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/moldova-inflation-is-not-a-problem-so-far-202056-eng\/","title":{"rendered":"Moldova: Inflation is not a problem so far"},"content":{"rendered":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>

An inflation rate of 0.2 percent was recorded for April 2009, while a deflation was recorded for the first five months of the year (-1.5 percent)  – see Diagram. Apparently, the inflation does not give headaches, as Moldova recorded deflation for the first five months of the year, but there is a simple explanation – the consumption has decreased much, and therefore, prices did not grow. But the satisfaction of decreasing prices has a short term, and it could turn into discontentment on a long term, since enterprises reduce\/stop making production or even become insolvent and\/or shut down.<\/p>\n

This situation fuelled by the fall of people’s incomes in Moldova reduces the revenues of the national public budget (state, social and health insurance) and wages of population. Even more, customs fees covered about 70 percent of the state budget incomes at least in 2007–2008. Imports decreased by more than 28 percent in the 1st quarter of 2009, as well as customs fees. Therefore, everybody suffered the consequences: employees of the private sector and public sector, retirees, invalids, students and even businesses, which provide goods\/works\/services to the state. Public investments in roads, current and capital repair, constructions, equipment etc. are also on the decline or even ceased.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>An inflation rate of 0.2 percent was recorded for April 2009, while a deflation was recorded for the first five months of the year (-1.5 percent) see Diagram 1. Apparently, the inflation does not give headaches, as Moldova recorded deflation for the first five months of the year, but there is a simple explanation \u2013 the consumption has decreased much, and therefore, prices did not grow.<\/p>\n","protected":false},"author":3,"featured_media":260431,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-260432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"content_social_share":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>

An inflation rate of 0.2 percent was recorded for April 2009, while a deflation was recorded for the first five months of the year (-1.5 percent)  – see Diagram. Apparently, the inflation does not give headaches, as Moldova recorded deflation for the first five months of the year, but there is a simple explanation – the consumption has decreased much, and therefore, prices did not grow. But the satisfaction of decreasing prices has a short term, and it could turn into discontentment on a long term, since enterprises reduce\/stop making production or even become insolvent and\/or shut down.<\/p>\n

This situation fuelled by the fall of people’s incomes in Moldova reduces the revenues of the national public budget (state, social and health insurance) and wages of population. Even more, customs fees covered about 70 percent of the state budget incomes at least in 2007–2008. Imports decreased by more than 28 percent in the 1st quarter of 2009, as well as customs fees. Therefore, everybody suffered the consequences: employees of the private sector and public sector, retirees, invalids, students and even businesses, which provide goods\/works\/services to the state. Public investments in roads, current and capital repair, constructions, equipment etc. are also on the decline or even ceased.<\/p>\n

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