Belarus’ inflation to stay above 7% per annum for most of 2021 - EDB
<p> MINSK, Mar 12 - PrimePress. Inflation in Belarus will start slowing in the second half of 2021, while remaining above 7 percent in annual terms for most of the year, the Eurasian Development Bank (EDB) said in a statement in its official telegram account. </p> <p> </p> <p> “The EDB estimates that monetary conditions remained relatively tight in the first quarter of 2021, supported by prudential measures and the regulator's restriction of the money supply. In January, new lending fell by almost 15% year on year. The decisions made point to a continuation of the monetary policy character in the coming months. With the National Bank's control of the money supply, inflation will start to slow in the second half of 2021 but could remain above 7% year on year for most of the year,” the report said. </p> <p> </p> <p> Commenting on the acceleration of year-on-year inflation in Belarus to 8.7% in February from 7.7% in January 2021, the EDB points out that the source of higher inflation remains medical goods and food products. According to the bank calculations, the prices of medicines rose by 20% in February (+14.4% in January) due to the VAT increase since the beginning of the year and the high demand in the pandemic. </p> <p> </p> <p> Food cost increase accelerated in February 2021 to 7.8% from 6.6% in the previous month amid global price increase and poor non-grain harvest in Belarus in 2020. An additional factor accelerating inflation in February was an increase in housing and utilities tariffs. </p> <p> </p> <p> “Inflation in March may remain slightly above the upper bound of the EDB forecast range of 8-8.5%,” the report says. </p> <p> </p> <p> The EDB earlier predicted inflation in Belarus in the range of 7-8% in the coming months. The bank experts expected that a further weakening of inflation will be caused by weak demand and the exhaustion of the effects of exchange rate carryover and food prices. End </p>
2021-03-13
Primepress
Belarus’ inflation to stay above 7% per annum for most of 2021 - EDB
MINSK, Mar 12 - PrimePress. Inflation in Belarus will start slowing in the second half of 2021, while remaining above 7 percent in annual terms for most of the year, the Eurasian Development Bank (EDB) said in a statement in its official telegram account.
“The EDB estimates that monetary conditions remained relatively tight in the first quarter of 2021, supported by prudential measures and the regulator's restriction of the money supply. In January, new lending fell by almost 15% year on year. The decisions made point to a continuation of the monetary policy character in the coming months. With the National Bank's control of the money supply, inflation will start to slow in the second half of 2021 but could remain above 7% year on year for most of the year,” the report said.
Commenting on the acceleration of year-on-year inflation in Belarus to 8.7% in February from 7.7% in January 2021, the EDB points out that the source of higher inflation remains medical goods and food products. According to the bank calculations, the prices of medicines rose by 20% in February (+14.4% in January) due to the VAT increase since the beginning of the year and the high demand in the pandemic.
Food cost increase accelerated in February 2021 to 7.8% from 6.6% in the previous month amid global price increase and poor non-grain harvest in Belarus in 2020. An additional factor accelerating inflation in February was an increase in housing and utilities tariffs.
“Inflation in March may remain slightly above the upper bound of the EDB forecast range of 8-8.5%,” the report says.
The EDB earlier predicted inflation in Belarus in the range of 7-8% in the coming months. The bank experts expected that a further weakening of inflation will be caused by weak demand and the exhaustion of the effects of exchange rate carryover and food prices. End