In May the industrial production registered an increase of 18.9 percent in comparable prices as compared to May 2006. Thus the production volume came close to the level registered during the similar period in 2006 – a fact that makes us think that in June-July the industrial recession is going to be totally overcome. The lack of certitude regarding the resumption of alcoholic beverages’ export to Russian Federation remains to be the main constraint that hinders the fully-fledged recovery of the Moldovan industry in short term. The available statistical data reveal a continuous worsening of the situation in the agricultural sector. The drought has compromised over 40 percent of grain yields, and the sugar beet growers are affected in a share of 90 percent June has witnessed the most restful evolution of consumption prices. The price rise of 0.7 percent and respectively 0.2 percent for non-food goods and services was compensated by the price drop by 1.3 percent for food products and resulted in zero monthly inflation. While having a cost decrease for fuel in April, the months of May and June have been affected by the new waves of price rise which were most painfully felt in the agricultural sector. The most serious short-term inflation factor continues to refer to the drought influence upon the agricultural sector and the prices for grain and vegetables.
Business and Economy Review, no. 21
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