June 9 (SeeNews) - Moldova's consumer prices rose by 16.3% year-on-year in May, decelerating from an annual increase of 18.1% in the previous month, the statistical office said on Friday.
Prices of services and food prices continued to be the main inflation drivers in May, soaring by an annual 33.3% and 14%, respectively, the National Bureau of Statistics, BNS, said in a statement.
Prices of non-food products rose 8.2% on the year in May.
On a monthly comparison basis, Moldova's consumer prices inched up by 0.5% in May, slowing down from a 2.2% monthly increase in April. The prices of services rose by 0.8% on the month, accounting for a 0.2 percentage point increase in average consumer prices. Food prices inched up by 0.4%, while the cost of non-food goods edged up by 0.3%, each contributing to the increase in average consumer prices with 0.1 percentage points.
In May, Moldova's central bank decided to cut its base rate to 10% from 14%, continuing the economy-stimulating monetary policy measures adopted since the end of 2022. The decision, which delivered the fourth cut in the bank's key rate since August, aimed to spur demand by encouraging consumption and balancing the national economy while anchoring inflationary expectations.
(1 euro=19.152 Moldovan lei)