Belarus’ annual inflation in to accelerate to 8-8.5% in February – EDB forecast

<p> MINSK, Feb 12 - PrimePress. Inflation in Belarus will accelerate to 8-8.5% year on year in February due to the rise in value added tax (VAT) on the import and sale of certain consumer and medical goods. This is stated in the forecast of the Eurasian Development Bank (EDB), posted on the official Telegram channel of the bank. </p> <p>   </p> <p> As previously reported, annual inflation in Belarus rose to 7.7% in Jan 2021 from 7.4% in Dec 2020. In January 2021, inflation was 1.1%. </p> <p>   </p> <p> “A strong influence on the acceleration of consumer price growth in January was caused by the rise in the cost of medicines (by 14.4% from 9.8% in December, according to the EDB calculation). This is likely due to both increased demand under the pandemic and the start of price adjustments due to the abolition of VAT benefits from January 1, 2021,” reads the report. </p> <p>   </p> <p> The bank experts point out that in January 2021 Belarus saw a significant increase in food prices - up 6.6% against the background of rising world prices. </p> <p>   </p> <p> “In February, the EDB forecasts an acceleration of inflation to 8-8.5% year-on-year due to the VAT increase on imports and sales of certain consumer and medical products. The rise in consumer prices will slow down in the second half of the year, provided global food prices and the national currency exchange rate stabilize," the EDB says. </p> <p>   </p> <p> The EDB earlier predicted inflation in Belarus in the range of 7-8% in the coming months. Further easing of inflation will be caused by weak demand and exhaustion of exchange rate and food price carryover effects. End </p>

2021-02-13

Primepress