Energy costs deepen Moldova’s inflation squeeze
Rising energy prices and domestic fiscal pressures are fuelling inflation in Moldova, pushing up household bills, food prices and service costs, economic expert Viorel Gîrbu said.
Energy prices and domestic policies fuel inflation
Consumer prices in Moldova rose by 2.7% in October compared with the previous month, while annual inflation reached 10.8%, according to the National Bureau of Statistics (NBS).
Expansionary fiscal policy and large budget deficits are adding to inflationary pressures, Gîrbu said. He also questioned the authorities’ response to external economic shocks.
“When inflation is driven by external factors originating outside the national economy, there is no need to introduce restrictive monetary policy measures. Yet this is precisely what we are doing. As a result, alongside the price crisis, we are also facing a concurrent economic crisis,” the expert said during the Zi de Zi programme on Radio Moldova.
Expert questions monetary policy approach
The National Bank of Moldova (NBM) expects inflation to return to its target range in the third quarter of 2027. However, Gîrbu said the central bank should pay greater attention to the impact of monetary policy on economic growth.
“The NBM frequently makes mistakes. The National Bank must provide a forecast. That is the institution’s responsibility. Its role is not limited to price stability; it must also consider the impact of monetary policy on economic growth and the pace of that growth. Unfortunately, we pay no attention to this aspect,” Gîrbu said.
On November 5, the NBM raised its base rate by two percentage points, from 9% to 11%, seeking to curb inflationary pressures by encouraging savings over consumption.
Government urged to strengthen social support
Gîrbu said the Government should respond more quickly through social policies, wage increases and adjustments to social benefits.
In addition to winter energy compensation, he called for stronger support for low-income households and faster increases in public-sector wages.
“What the Government can do immediately is provide compensation, consider swift wage increases and introduce active social policies that respond promptly to citizens’ needs. The Government should be more proactive in this area, raise public-sector salaries much faster and ensure that wages do not remain extremely low,” the economic expert said.
Moldova records highest monthly inflation in regional comparison
Moldova recorded the highest monthly inflation rate among the countries included in the NBS comparison, with consumer prices rising by 2.7% in October.
The increase exceeded the rates reported for Turkey, Bulgaria and Georgia, according to the figures cited in the source material.
The NBM has warned that the external environment remains highly uncertain, citing persistent geopolitical and trade tensions, energy security risks and vulnerabilities in international supply chains.
These factors could further fuel inflationary pressures and complicate the economic outlook.
Translation by Iurie Tataru
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