Belarus’ inflation accelerates due to ruble’s fall amid growing negative expectations - National Bank
<p> MINSK, Oct 30 - PrimePress. The main drivers of accelerating inflation in Belarus were the weakening of the Belarusian ruble against the backdrop of rising inflationary expectations and anticipation of currency depreciation. </p> <p> </p> <p> The National Bank of Belarus (NBB) has posted a statement to this effect in a quarterly report, which analyzes the dynamics and factors of changes in consumer prices and tariffs in the third quarter of 2020. </p> <p> </p> <p> As previously reported, annual inflation in Belarus has increased to 6.1%, while the target for the whole of 2020 is no more than 5%. </p> <p> </p> <p> “The high degree of uncertainty about the future development of the COVID-19 pandemic, as well as the prevailing socio-political situation in the second half of the quarter led to increased inflationary expectations in the economy. This led to increased demand for foreign currency in August 2020, both from companies and from individuals. As a result of pressure on the domestic foreign exchange market, the Belarusian ruble weakened, which affected the dynamics of free prices on the consumer market,” the NBB said. </p> <p> </p> <p> As a result of these factors, annual core inflation accelerated from 3.7% in June to 5.4% in September 2020. There was a significant increase in the prices of imported goods as well as services, the cost of which depends on the exchange rate factor. </p> <p> </p> <p> Most non-food items (electrical goods, TV sets, construction materials, cars) and air transport services became more expensive. In the food segment, the main contribution to price increases was made by the higher prices of meat and fish products. </p> <p> </p> <p> “At the same time, indirect price regulation measures had a deterrent effect on core inflation. In order to prevent unreasonably high price rises in the retail sector, the government has decided to extend regulation of trade margins for socially important goods,” the National Bank said. </p> <p> </p> <p> Trend inflation also accelerated in the third quarter of 2020 and amounted to 4.2% in year-on-year terms in September 2020 (3.1% in June 2020). </p> <p> </p> <p> During the third quarter of 2020, prices for fruit and vegetable products demonstrated a level of year-on-year growth. In September 2020, fruit and vegetable prices increased by 21.4%. Accelerated price growth was observed for most types of vegetables, including potatoes. </p> <p> </p> <p> As previously reported, Belarus’ inflation in September 2020 was 0.9%, in January-September - 4.7%. The official inflation forecast for 2020 was not more than 5%, in October the National Bank stretched it to 6%. End </p>
2020-10-31
Primepress
Belarus’ inflation accelerates due to ruble’s fall amid growing negative expectations - National Bank
MINSK, Oct 30 - PrimePress. The main drivers of accelerating inflation in Belarus were the weakening of the Belarusian ruble against the backdrop of rising inflationary expectations and anticipation of currency depreciation.
The National Bank of Belarus (NBB) has posted a statement to this effect in a quarterly report, which analyzes the dynamics and factors of changes in consumer prices and tariffs in the third quarter of 2020.
As previously reported, annual inflation in Belarus has increased to 6.1%, while the target for the whole of 2020 is no more than 5%.
“The high degree of uncertainty about the future development of the COVID-19 pandemic, as well as the prevailing socio-political situation in the second half of the quarter led to increased inflationary expectations in the economy. This led to increased demand for foreign currency in August 2020, both from companies and from individuals. As a result of pressure on the domestic foreign exchange market, the Belarusian ruble weakened, which affected the dynamics of free prices on the consumer market,” the NBB said.
As a result of these factors, annual core inflation accelerated from 3.7% in June to 5.4% in September 2020. There was a significant increase in the prices of imported goods as well as services, the cost of which depends on the exchange rate factor.
Most non-food items (electrical goods, TV sets, construction materials, cars) and air transport services became more expensive. In the food segment, the main contribution to price increases was made by the higher prices of meat and fish products.
“At the same time, indirect price regulation measures had a deterrent effect on core inflation. In order to prevent unreasonably high price rises in the retail sector, the government has decided to extend regulation of trade margins for socially important goods,” the National Bank said.
Trend inflation also accelerated in the third quarter of 2020 and amounted to 4.2% in year-on-year terms in September 2020 (3.1% in June 2020).
During the third quarter of 2020, prices for fruit and vegetable products demonstrated a level of year-on-year growth. In September 2020, fruit and vegetable prices increased by 21.4%. Accelerated price growth was observed for most types of vegetables, including potatoes.
As previously reported, Belarus’ inflation in September 2020 was 0.9%, in January-September - 4.7%. The official inflation forecast for 2020 was not more than 5%, in October the National Bank stretched it to 6%. End