News about inflation
A Federal Reserve (Fed) spokesman cautions against viewing the oil shock as temporary, believing that policy tightening is possible if inflationary pressures do not abate. This could include not only a change in interest rates, but also a review of the Fed’s use of the balance sheet.
Global energy inflation will be delayed for a longer period of time due to the conflict in the Middle East and supply disruptions. Experts forecast that high oil and gas prices will act as a driver of overall price growth and stagflationary processes until at least the end of 2027.
European Central Bank President Christine Lagarde said the independence of the U.S. Federal Reserve remains in jeopardy and requires support from voters and lawmakers.
International rating agency Fitch Ratings forecasts Moldova’s GDP growth in 2026-2027 at an average of 3%, given improving external reserve buffers and the authorities’ macroeconomic policies, which mitigate the risks of energy shocks, the agency said in a commentary published on Tuesday after Chisinau agreed a non-financial cooperation program with the IMF.
Wheat futures are down for the longest period this year. Traders returning from a long weekend in the U.S. are “wagering” on news of “progress in negotiations” in the Middle East.
China is cutting the interest rate on consumer loans to a record low to stimulate the economy. The reduction in borrowing costs comes amid signs that the Chinese economy is slowing after a strong first quarter. Growth slowed across the board in April and the People’s Bank of China (MLF) went for a further cut in May. In May, some banks borrowed under the People’s Bank’s annual medium-term lending facility at a rate of just 1.45%, down 0.05 percentage points from April.
The case of importing Brazilian chicken to Israel has taken an unexpected turn. The country’s chicken meat market remains closed to foreign products, and Baladi’s attempt to obtain permission to import chicken meat from Brazil, from where Israel has been importing beef for many years, has met with stiff resistance from local producers.
Official inflation in Moldova in annualized terms in April 2026 amounted to 6.8%. In the previous month it was 5.8%. So the April growth was the most significant since December 2025.
Prices may increase by 10% by the end of the year. This was pointed out by the Minister of Economic Development and Digitalization, Eugeniu Osmochescu. According to him, petrol and diesel will be followed by an inevitable rise in the prices of everyday products and services.
On Friday, investment bank JPMorgan warned that Turkey’s central bank is likely to raise its key interest rate to 40%. The increase could come before the next scheduled meeting in June, given the current market volatility caused by political factors.
The European Commission said Thursday it has sharply lowered its forecast for Romania’s economic growth in 2026 to 0.1 percent from 1.1 percent projected last fall.
The Agency for Competition and Consumer Protection of Georgia announces its intention to create a unified information platform for monitoring the Family Basket program.
Chisinau will not receive money, but the rigidity of criteria for evaluating economic policy will remain at the level of standard IMF loan agreements. Any violation of the reform schedule will instantly deprive Moldova of the status of a “reliable borrower” before other donors.
Yesterday, the IMF Mission and the Government of Moldova reached an expert-level agreement on a new policy coordination instrument (PCI) for the next 3 years, without financing.
The National Energy Regulatory Agency (NERA) has set new maximum fuel prices that will be in effect tomorrow, May 22.
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.
Conflict in the Middle East is increasing pressure on Sri Lanka’s tea industry, putting one of the country’s key export sectors and the millions of people who depend on Ceylon tea production at risk.
The global luxury industry is facing a noticeable cooling of demand after several years of record growth. After the pandemic, major fashion houses actively raised prices, taking advantage of high demand and the desire of buyers for status consumption. However, this strategy is now starting to backfire.
Experts at leading market maker Wintermute have pointed to the risks of further bitcoin depreciation amid the deteriorating macroeconomic situation.
The G7 countries are unanimous in their support for Ukraine. Following the G7 finance ministers’ meeting in Paris, French Economy and Finance Minister Roland Lescure reiterated the G7 countries’ intention to “keep pressure on Russia”.
