VIDEO | Vice Governor Mitreska: There is almost no country where inflation is not rising, driven by common global factors

Ana Mitreska, M.Sc., Vice Governor of the NBRSM / Photo: Free Press

How long will the growth of inflation last? The magic number of 10% has passed. Many say that we are approaching the incredible movements of 1997. How to control the growth of inflation.

- Yesterday we completed the latest macroeconomic projections. Unfortunately, what the world expected in October, and that is some stabilization and normalization of all economic flows did not happen for the simple reason that in the meantime, the world, especially Europe, faced a very big shock, a blow, and that is the Russian invasion of Ukraine, which has an economic cost and brings economic damage to the entire global economy, said for the morning briefing Vice Governor, Ana Mitreska, MA.

She adds that one of those harms is the rise in prices.

"This was expected because these are two countries that are one of the largest exporters, global suppliers in the markets of food, energy, and that of course is further transmitted to inflation in other economies," she said.

The vice-governor says that the inflation they have announced is 8,8 percent and it is based on certain assumptions.

- There is a big change in the assumptions about import prices. If we expect the imported inflation in October to be around two percent, now it is six. "Primary commodity prices, energy prices, food prices, cereals prices - corrections are up, given this shock and shock that is happening," said the vice governor.

She adds that there are global common factors driving inflation and there is almost no country where inflation is not rising.

-Many of these movements are imported from us, and the pressure from domestic consumption is small. However, inflation is expected to stabilize at around 3 percent, Mitreska said.

Asked if a denar devaluation is possible, the Vice Governor is adamant that it can not happen:

-Foreign reserves are solid and healthy. The monetary policy is assessed as adequate. And there is no need to panic advocating theses about exchange rate stability, nor are there any reasons to change the value of the exchange rate, and on the other hand we have safeguards to manage the stability and maintain exchange rate stability. In that context, there is absolutely no need to worry about exchange rate stability, said the Vice Governor.

Watch the whole conversation in the video:

 

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