EBD expects Belarus’ inflation to decelerate to 6-6.6% in 2021
<p> MINSK, Mar 31 - PrimePress. The Eurasian Development Bank (EDB) expects inflation in Belarus to slow down to 6-6.6% by the end of 2021 as a result of lower consumer demand, said Anatoli Kharitonchik, Senior Analyst of the Centre for Country Analysis of the EDB Directorate for Analytical Work. </p> <p> </p> <p> The official made a statement to this effect while presenting analytical report “EDB Macroeconomic Outlook: Strong Recovery Growth in 2021” on Mar 31. </p> <p> </p> <p> “[Year-on-year] inflation in Belarus crossed the 8% mark at the beginning of 2021, and we forecast its dynamics around 7-8% for most of the year. The effects of the weakening of the Belarusian ruble and the rise in global food prices will keep prices high. The VAT increase for some groups of goods starting from January 2021 will add about 0.5 to 0.6 p. p. to the inflation rate,” said Kharitonchik. </p> <p> </p> <p> The EDB representative added that the bank experts expect a strong disinflationary impact in Belarus from the reduction in consumer demand. </p> <p> </p> <p> “If the situation on the currency market remains stable and the growth of food prices slows down, this will reduce inflation to 6-6.6% by the end of the year,” said Kharitonchik. </p> <p> </p> <p> 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 the inflation rate would be caused by weak demand and exhaustion of the exchange rate carryover effects and food prices. </p> <p> </p> <p> As previously reported, annual inflation in Belarus accelerated in February 2021 to 8.7% from 7.7% in January 2021. Year-on-year aggregate trend inflation was 6.5% in February 2021 against 5.9% in January 2021 and 5.6% in December. </p> <p> </p>
2021-04-01
Primepress
EBD expects Belarus’ inflation to decelerate to 6-6.6% in 2021
MINSK, Mar 31 - PrimePress. The Eurasian Development Bank (EDB) expects inflation in Belarus to slow down to 6-6.6% by the end of 2021 as a result of lower consumer demand, said Anatoli Kharitonchik, Senior Analyst of the Centre for Country Analysis of the EDB Directorate for Analytical Work.
The official made a statement to this effect while presenting analytical report “EDB Macroeconomic Outlook: Strong Recovery Growth in 2021” on Mar 31.
“[Year-on-year] inflation in Belarus crossed the 8% mark at the beginning of 2021, and we forecast its dynamics around 7-8% for most of the year. The effects of the weakening of the Belarusian ruble and the rise in global food prices will keep prices high. The VAT increase for some groups of goods starting from January 2021 will add about 0.5 to 0.6 p. p. to the inflation rate,” said Kharitonchik.
The EDB representative added that the bank experts expect a strong disinflationary impact in Belarus from the reduction in consumer demand.
“If the situation on the currency market remains stable and the growth of food prices slows down, this will reduce inflation to 6-6.6% by the end of the year,” said Kharitonchik.
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 the inflation rate would be caused by weak demand and exhaustion of the exchange rate carryover effects and food prices.
As previously reported, annual inflation in Belarus accelerated in February 2021 to 8.7% from 7.7% in January 2021. Year-on-year aggregate trend inflation was 6.5% in February 2021 against 5.9% in January 2021 and 5.6% in December.