Government and central bank to keep inflation in check as long as possible

07/11/17 18:28

Government and central bank to keep inflation in check as long as possible

This is what the head of the PRB, Vladislav Tidva, declared during an extended meeting of the Presidium of the Public Chamber of the PMR
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Tiraspol, 11 July. /Novosti Pridnestrovya/. The government and central bank will minimise inflation as long as possible which has accelerated since a decision had been taken to devalue the Pridnestrovian rouble. According to the head of the Pridnestrovian Republican Bank (PRB), Vladislav Tidva, the inflation rate could reach 10% by the end of the year. He noted that its spike had occurred in July when prices rose by 3%, and the price index for food products had totalled 12%.

A significant factor deterring the growth of prices is, according to Tidva, the freezing of public utility tariffs.

«We have a powerful lever to influence inflation through the maintenance of public utility prices. Nearly no one, including Russia, has such a lever… This allows us to reduce this rate. If we recall how inflation proceeded in Moldova, Ukraine, Russia, these processes were much more painful," said Tidva.

He noted that in Ukraine the inflation rate had been over 40% in three years, in Russia it had totalled 15% in 2014.

According to Tidva, human welfare is determined by the quantity of goods and services that he or she can buy for the income earned. The authorities are therefore paying close attention to the struggle against rising prices.

«We are trying to minimise the rate of inflation," Tidva underscored, explaining that, thanks to Russia, it would be much easier to overcome the difficulties that had arisen.

The decision to devalue the Pridnestrovian rouble, Tidva said, was taken on the basis of the monetary and foreign trade situation: the rouble had been affected by last year's monetary emissions and foreign exchange shortages. Another negative aspect was the devaluation of the Russian rouble against the background of the stable Pridnestrovian currency, which has led to higher prices for our goods in the Russian market.

 

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