Belarus’ inflation accelerates in Q1 due to growing import prices, inflation and devaluation expectations - National Bank

<p> MINSK, Apr 30 – PrimePress. Inflation in Belarus continued to accelerate in Q1 2021 due to an increase in global prices for foodstuffs, imported non-food products as a result of rising logistics costs and supply disruptions caused by the pandemic, cancellation of the preferential VAT rates for some goods, and rising inflation and devaluation expectations of economic agents in the country. </p> <p>   </p> <p> The National Bank of Belarus made a statement to this effect in a report on the dynamics and factors of changes in consumer prices and tariffs in the first quarter of 2021. </p> <p>   </p> <p> “In the first quarter of 2021, there was an acceleration in the annual dynamics of free and regulated prices with a slight slowdown in the growth of prices of fruit and vegetable products. Core inflation accelerated to 8.2% year on year in March 2021 (7.1% in December 2020). A significant contribution to the acceleration in core inflation was made by the rise in the cost of food products. In the non-food segment, most imported goods (clothing, footwear, household chemicals, electrical goods and their components) went up in price,” the National Bank said. </p> <p>   </p> <p> Trend inflation continued to accelerate, reaching 6.7% year on year in March 2021 (5.6% in December 2020). At the same time, the homogeneity of consumer price growth did not change significantly. The share of goods and services whose prices and tariffs decreased or increased by less than 5% per annum was 38% in March 2021 (40% in December 2020). </p> <p>   </p> <p> Regulated prices and tariffs in March 2021 rose by 8.7% year on year (6.7% in December 2020). Higher dynamics of prices and tariffs for medicines, as well as housing and utilities services largely contributed to the acceleration of price growth in the group. End </p> <p>   </p>

2021-05-01

Primepress