Moldova's consumer price inflation cooled to a 14-month low of 3.6% year-on-year in August from 7% in July, official data showed on Friday.

Compared to the previous month, consumer prices fell by 0.4% in August, following a 0.9% month-on month decrease in July, according to data released by Moldova's National Bureau of Statistics.

In August, food prices fell 1.2% on the month but were 6.2% higher on the year.

Prices of non-food products increased by 0.1% on the month and rose 4.5% on the year.

Prices of public utilities and transport services rose by 0.2% on the month but dropped 0.4% on the year.

At its last monetary policy meeting, Moldova's central bank, BNM, decided to keep its key rate at 10%, striving to hold inflation rate close to its 5.0% target.

It pointed out that external risks to inflation remain high, given the weak economic activity in the eurozone and the continuing recession in Russia, which are Moldova's main trading partners.

In August, the central bank projected 6.7% inflation for 2016 and 4.4% for 2017, lowering its previous forecast from May, which predicted inflation of 7% for 2016 and 4.8% for 2017, SEE News reports.