Economic expert: Electricity and central heating price increases directly contributed to inflation increase
Consumer prices increased by nearly 3 percent in January compared to December, with annual inflation exceeding 9 percent, according to the National Bureau of Statistics (NBS). In addition to rising food prices, costs for electricity, central heating, and fuel have also surged. Experts warn that this sharp increase in prices will have an impact on the national economy, especially affecting citizens from socially vulnerable groups the most.
Average consumer prices for food products rose by 1% in January compared to December, according to data from the National Bureau of Statistics. The largest increase was in vegetables, which went up by over 6%, followed by dairy products at 1%, vegetable oil at 0.85%, and meat and bread at just over 0.50%. Monthly inflation for non-food goods reached 0.80%.
Services provided to the population increased by about 8% within a single month. Economic expert Marin Gospodarenco argues that this rise is the main cause of increasing inflation.
“The dramatic increases in electricity and central heating are the key drivers of inflation. Electricity bills rose by about 50%, contributing directly 1.8% to the increase in the consumer price index. Tariffs for central heating also increased by 25%. This situation places enormous pressure on households, especially during the cold season when energy and heating consumption is essential,” Gospodarenco explained.
This sharp rise in energy and service prices could create a domino effect on the economy. Higher household costs may reduce consumption, potentially slowing down economic growth, according to Gospodarenco.
“Moreover, increased utility expenses will disproportionately affect vulnerable groups in the population, raising the risk of energy poverty. In this context, authorities must implement well-targeted social protection measures, whether by adjusting policies or through support mechanisms for the most affected groups. In addition to supporting measures for the population, economic policies are needed to limit inflationary pressures in the long term. Boosting investment in alternative energy sources and diversifying supply markets could help mitigate energy price volatility, while more balanced fiscal and monetary policies could contribute to stabilizing the economy,” emphasized Marin Gospodarenco.
The annual inflation rate of 9.1% indicates a significant rise in costs, particularly in the services and food sectors. In December, the inflation rate was 6.97%.
In comparison, the Republic of Moldova has experienced a higher price increase than some European countries, such as France and Germany, which have seen a decrease in average prices.
